Core Viewpoint - Halliburton Company (HAL) has experienced a significant decline in stock value, hitting a 52-week low of $25.16, reflecting a nearly 21% drop over the past year, primarily due to its heavy reliance on North American operations facing pricing pressures and reduced drilling activity [1][4]. Company Performance - Halliburton's stock has underperformed compared to the Zacks Oil and Gas Field Services industry, which gained 9.9%, and its peer SLB, which fell 10% during the same period [1]. - The company generates over 40% of its revenues from North America, making it more susceptible to regional economic slowdowns compared to peers like SLB and Baker Hughes, which derive only 20-25% of their revenues from the region [3]. Financial Estimates - The Zacks Consensus Estimate for Halliburton's 2025 EPS has decreased by 10% over the past 30 days, from $2.97 to $2.67 [4]. - Current estimates for the upcoming quarters and years show a decline in expected EPS, with the current year (2025) estimate at $2.67, down from $3.11 two months ago [5]. Revenue Trends - North American revenues fell by 8% year-over-year in 2024, with expectations of further low- to mid-single-digit declines in 2025 due to lower negotiated pricing for pressure pumping services [6]. - The U.S. rig count is trending downward, contributing to a slowdown in completion activity and oil demand growth [6]. Profitability Challenges - Halliburton's Completion & Production operating margin was 20% in the December quarter, but a sequential decline of 1.75-2.25% is expected in the January-March period [7]. - The company faces margin compression, with operating margins in the Completion & Production segment declining by 49 basis points due to weaker North American stimulation activity [8]. Tax and Cost Pressures - Rising tax expenses are projected to increase by 300 basis points to 25.5% in 2025, alongside higher interest costs, threatening Halliburton's ability to maintain strong margins [9]. International Growth Outlook - While international revenues grew by 6% in 2024, growth is expected to stall in 2025, primarily due to a decline in activity in Mexico [10]. - Excluding Mexico, international revenues are projected to grow at a low- to mid-single-digit rate, insufficient to offset losses in North America [10]. Valuation Concerns - Halliburton's stock trades at a forward Price/Earnings multiple of 9.77X, which is higher than its three-year low of 8.10X, raising concerns about the justification of this premium given declining revenues and margin pressures [12]. Positive Developments - The company is investing in advanced drilling technology and artificial lift, which are expected to generate $2.5-$3 billion in annual revenues over the next three to five years [13]. - Halliburton continues to generate solid free cash flow, reporting $1.1 billion in Q4 2024 and $2.6 billion for the full year, with a focus on capital discipline [14]. Final Assessment - Given the heavy North American exposure, margin compression, and slowing international growth, Halliburton's outlook for 2025 appears challenging, leading to a Zacks Rank of 5 (Strong Sell) [16][17].

Group 1 - Halliburton Company (HAL) has secured a significant offshore drilling contract with Petrobras (PBR), marking its largest service contract with the Brazilian energy company [1] - The contract will begin in 2025 and encompasses integrated drilling services for a duration of three years, enhancing Halliburton's operations in Brazil's pre-salt and post-salt regions [1] Group 2 - Halliburton plans to utilize advanced technologies such as the iCruise® intelligent rotary steerable system, LOGIX™ automation platform, EarthStar® ultra-deep resistivity service, and BaraLogix® real-time service to optimize drilling operations [2] - These technologies aim to improve well placement accuracy, reduce well time, enhance consistency in well construction, and address drilling fluid challenges through predictive analytics [2] Group 3 - Investors in the energy sector may consider SM Energy Company (SM) and Sunoco LP (SUN) as potential investment opportunities [4][5] - SM Energy is projected to experience a 15.11% year-over-year growth in earnings for 2024, while Sunoco is expected to see a substantial 184.11% year-over-year growth in the same period [4][5]

Core Viewpoint - Halliburton Co. is anticipating a soft North American energy services market in 2025, with declining earnings expected this year [1] Financial Performance - Halliburton reported fourth quarter 2024 earnings of $0.70, meeting Zacks Consensus, with only one earnings miss in the last five years [2] - North American revenue fell 7% sequentially to $2.2 billion, driven by lower stimulation activity and decreased fluid services in the U.S. and Canada [3] - International revenue rose 3% sequentially to $3.4 billion, with varied outlooks across segments [3] Regional Performance - Latin America revenue decreased 9% sequentially to $953 million due to lower activity in Mexico and Argentina [4] - Europe/Africa revenue increased 10% sequentially to $795 million, attributed to improved drilling-related services in the North Sea and higher fluid services in Africa [4] - Middle East/Asia revenue grew 7% sequentially to $1.6 billion, driven by higher stimulation activity and increased fluid services [5] Earnings Estimates - Analysts have cut Halliburton's 2025 earnings estimates from $3.05 to $2.67, reflecting a 10.7% decline from 2024 earnings of $2.99 [6] Stock Performance - Halliburton's shares have declined 25.1% over the last six months, including a 6.2% drop in 2025 [7] - The stock trades at a forward P/E ratio of 9.7, indicating it may be undervalued, but declining earnings raise concerns about a potential value trap [7] Cash Flow and Shareholder Returns - Halliburton generated $2.6 billion in free cash flow in 2024, with a share repurchase program and a current dividend yield of 2.6% [8] - Investors may consider waiting for a recovery in North American market conditions before making investment decisions [8]

Halliburton's (NYSE: HAL ) stock has continued to perform poorly in recent months as its financials slowly deteriorate. This is not necessarily surprising, given tepid oil and gas demand growth and discipline on the part of operators in supportRichard Durant is the leader of Narweena, an asset manager focused on finding market dislocations that are the result of a poor understanding of a businesses long-term prospects. Narweena believes that excess risk adjusted returns can be achieved by identifying busine ...

Core Viewpoint - Halliburton's fourth-quarter earnings report showed mixed results, with non-GAAP earnings per share slightly exceeding expectations, but revenue falling short, indicating challenges in the current market environment [1][2]. Financial Performance - Halliburton's Q4 non-GAAP earnings per share were $0.70, surpassing analyst expectations by $0.01, while revenue was $5.6 billion, missing forecasts by $30 million, reflecting a 2.4% year-over-year decline [1]. - For fiscal year 2024, Halliburton's revenue remained steady at $22.9 billion, but overall operating income declined by 6% year-over-year to $3.8 billion [5]. Regional Performance - North America experienced a 7% sequential and 9% year-over-year decrease in revenue to $2.2 billion, attributed to reduced hydraulic fracturing activity [3]. - International revenue increased by 2% year-over-year to $3.4 billion, with notable growth in the Middle East/Asia region, which saw a 9% year-over-year increase [3]. Market Outlook - Halliburton's stock is projected to have upside potential in the long run, with a forecasted revenue of $23.1 billion for fiscal year 2025 and expected EPS of $2.95, leading to a revised valuation of $31 per share [2]. - The company is focusing on growth areas through internal product development, particularly in its artificial lift product line, which is growing at double the rate of the rest of the business in international markets [5]. Industry Factors - The global oil market is expected to be influenced by a rebound in China's oil demand, geopolitical factors affecting supply, and rising output from non-OPEC countries, which may limit price increases [6]. - The International Energy Agency has revised its 2025 oil demand growth projection downward to 1.05 million barrels per day, although demand is still expected to surpass last year's growth [7].

Halliburton Company (HAL) reported fourth-quarter 2024 adjusted net income per share of 70 cents, the same as the Zacks Consensus Estimate but below the year-ago quarter’s profit of 86 cents (adjusted). The numbers reflect softer activity in the North American region, partly offset by improved fluid work in the Gulf of Mexico.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Meanwhile, revenues of $5.6 billion were 2.2% lower year over year and missed the Zacks Consensus Estimate by $31 ...

Core View - Halliburton Company (HAL) shares are trading lower by 1.51% to $29.09, following a Q4 revenue decline of 2.3% YoY to $5.610 billion, missing consensus estimates [1][5] - Goldman Sachs analyst Neil Mehta maintains a Buy rating with a $36 price target, citing strong free cash flow performance and stock repurchases [1][3] Financial Performance - Q4 revenue declined 2.3% YoY to $5.610 billion, missing consensus estimates of $5.63 billion [1] - Completion and Production revenue fell 4.2% YoY to $3.2 billion, with $629 million operating income [1] - Free cash flow for the quarter was $1.104 billion, surpassing analyst estimates of $930 million and consensus of $1.045 billion [3] - Capital expenditures were lower than expected at $426 million vs analyst estimate of $454 million [3] Regional Performance - North America revenue was 7% below analyst estimates [2] - International revenue was 3% higher than analyst estimates [2] Capital Allocation - The company repurchased approximately $309 million in common stock, in line with analyst estimates of $310 million [3] Analyst Concerns - Uncertainty around 2025 revenue growth by region, particularly in the Middle East [4] - Questions about long-term margin expansion in a flat activity environment [4] - Ambiguity about Halliburton's future participation in the power space, including its partnership with VoltaGrid [5] - Uncertainty around capital returns approach for 2025 [5]

Financial Data and Key Metrics Changes - Halliburton reported significant changes in financial performance for Q4 2024, with specific metrics to be detailed in the full report [2][3] Business Line Data and Key Metrics Changes - The company will provide insights into the performance of various business lines, including revenue and operational efficiency, during the call [2][3] Market Data and Key Metrics Changes - Market conditions affecting Halliburton's operations will be discussed, including regional performance and demand trends [2][3] Company Strategy and Development Direction - Management will outline the strategic initiatives and future direction of Halliburton, focusing on competitive positioning within the industry [2][3] Management Comments on Operating Environment and Future Outlook - The management team will share their perspectives on the current operating environment and future outlook, addressing potential risks and opportunities [2][3] Other Important Information - The call will include discussions on non-GAAP financial measures and their reconciliations to GAAP measures, providing a clearer picture of financial health [4] Q&A Session Summary Question: What are the expectations for revenue growth in the upcoming quarters? - Management will address anticipated revenue growth and factors influencing these projections during the Q&A session [2][3] Question: How is Halliburton positioning itself against competitors? - The company will discuss its competitive strategies and market positioning in response to industry challenges [2][3]

Halliburton (HAL) came out with quarterly earnings of $0.70 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.86 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this provider of drilling services to oil and gas operators would post earnings of $0.75 per share when it actually produced earnings of $0.73, delivering a surprise of -2.67%.Over the last four quarters, the company has surpassed consensus EPS estimates ...

Financial Performance - Net income for Q4 2024 was $615 million, or $0.70 per diluted share, compared to $571 million, or $0.65 per diluted share in Q3 2024[2] - Total revenue for Q4 2024 was $5.6 billion, compared to $5.7 billion in Q3 2024[2] - Operating income for Q4 2024 was $932 million, compared to $871 million in Q3 2024[2] - Full-year 2024 revenue was $22.9 billion, flat compared to 2023[2] - Full-year 2024 operating income was $3.8 billion, compared to $4.1 billion in 2023[2] - Total revenue for the year ended December 31, 2024, was $22.944 billion, a slight decrease from $23.018 billion in 2023[25] - Net income attributable to the company for 2024 was $2.501 billion, down from $2.638 billion in 2023[25] - Total operating income for 2024 was $3.822 billion, down from $4.083 billion in 2023[25] - Operating income for the year ended December 31, 2024, was $3,822 million, compared to $4,083 million in 2023[42] - Adjusted operating income for 2024 was $3,938 million, after adding $116 million in impairments and other charges[42] - Net income attributable to the company for the year ended December 31, 2024, was $2,501 million, compared to $2,638 million in 2023[49] - Adjusted net income attributable to the company for 2024 was $2,644 million, after adding $143 million in net adjustments[49] - Adjusted net income per diluted share for 2024 was $2.99, compared to $3.13 in 2023[49] Segment Performance - Completion and Production revenue in Q4 2024 was $3.2 billion, a 4% decrease sequentially[6] - Drilling and Evaluation revenue in Q4 2024 was $2.4 billion, flat sequentially[7] - Completion and Production segment revenue for 2024 was $13.251 billion, compared to $13.689 billion in 2023[25] - Drilling and Evaluation segment revenue increased to $9.693 billion in 2024 from $9.329 billion in 2023[25] Regional Performance - North America revenue in Q4 2024 was $2.2 billion, a 7% decrease sequentially[8] - International revenue in Q4 2024 was $3.4 billion, a 3% increase sequentially[9] - North America revenue decreased to $9.626 billion in 2024 from $10.492 billion in 2023[38] - Middle East/Asia revenue increased to $6.104 billion in 2024 from $5.678 billion in 2023[38] Cash Flow and Capital Management - Halliburton repurchased $309 million of its common stock and $100 million of debt in Q4 2024[14] - Cash and equivalents increased to $2.618 billion at the end of 2024 from $2.264 billion in 2023[31] - The company repurchased $1.005 billion worth of stock in 2024, up from $800 million in 2023[33] - Free cash flow for the year ended December 31, 2024, was $2,646 million, compared to $2,274 million in 2023[54] - Total cash flows provided by operating activities for 2024 were $3,865 million, compared to $3,458 million in 2023[54] - Capital expenditures for 2024 were $1,442 million, compared to $1,379 million in 2023[54] - Proceeds from sales of property, plant, and equipment for 2024 were $223 million, compared to $195 million in 2023[54] Shareholder Metrics - Diluted weighted average common shares outstanding for 2024 were 883 million, compared to 902 million in 2023[49] - Adjusted net income per diluted share for 2024 was $2.99, compared to $3.13 in 2023[49] Impairments and Charges - The company incurred a $116 million charge in 2024 due to impairments and other charges, compared to none in 2023[25]