Company Performance - Halliburton reported quarterly earnings of $0.55 per share, matching the Zacks Consensus Estimate, but down from $0.8 per share a year ago [1] - The company posted revenues of $5.51 billion for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 1.35%, but down from $5.83 billion year-over-year [2] - Over the last four quarters, Halliburton has not surpassed consensus EPS estimates, although it has topped revenue estimates twice [2] Stock Outlook - Halliburton shares have declined approximately 22.1% since the beginning of the year, contrasting with the S&P 500's gain of 7.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $5.49 billion, and for the current fiscal year, it is $2.34 on revenues of $21.78 billion [7] Industry Context - The Oil and Gas - Field Services industry, to which Halliburton belongs, is currently ranked in the bottom 5% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Halliburton's stock performance [5][6]

Halliburton Q2 2025 Earnings Release [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Halliburton reported Q2 2025 net income of $472 million on $5.5 billion revenue, with $896 million operating cash flow and $250 million stock repurchases Q2 2025 vs Q1 2025 Financial Performance (in millions) | Metric | Q2 2025 | Q1 2025 (GAAP) | Q1 2025 (Adjusted) | | :--- | :--- | :--- | :--- | | Total Revenue | $5,500 | $5,400 | $5,400 | | Operating Income | $727 | $431 | $787 | | Net Income | $472 | $204 | $517 | | Diluted EPS | $0.55 | $0.24 | $0.60 | - In Q2 2025, the company generated cash flow from operations of **$896 million** and free cash flow of approximately **$582 million**[7](index=7&type=chunk) - The company repurchased approximately **$250 million** of its common stock during the second quarter[7](index=7&type=chunk)[18](index=18&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management expects a softer oilfield services market but reaffirms shareholder returns and confidence in international strategy - The oilfield services market is anticipated to be softer than previously expected in the short to medium term[4](index=4&type=chunk) - The company remains fully committed to its shareholder returns framework despite near-term market softness[4](index=4&type=chunk) - Management is confident in its international strategy, with growth engines in unconventionals, drilling, production services, and artificial lift remaining key[5](index=5&type=chunk) - In North America, Halliburton expects to outperform competitors due to its unmatched capability to deliver technology and service execution at scale[6](index=6&type=chunk) [Segment Performance](index=1&type=section&id=Operating%20Segments) Both segments saw 2% revenue growth, but operating income declined due to lower pricing in US Land and seasonal software sales [Completion and Production](index=2&type=section&id=Completion%20and%20Production) Completion and Production revenue grew 2% to $3.2 billion, but operating income fell 3% to $513 million due to lower US Land pricing Completion and Production Performance (Q2 2025 vs Q1 2025, in millions) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Revenue | $3,200 | $3,100 | +2% | | Operating Income | $513 | $531 | -3% | - Revenue growth was driven by improved pressure pumping services and higher completion tool sales in the Western Hemisphere, along with better well intervention services internationally[8](index=8&type=chunk) - The decline in operating income was primarily caused by lower pricing for stimulation services in US Land[8](index=8&type=chunk) [Drilling and Evaluation](index=2&type=section&id=Drilling%20and%20Evaluation) Drilling and Evaluation revenue grew 2% to $2.3 billion, but operating income decreased 11% to $312 million due to software sales and costs Drilling and Evaluation Performance (Q2 2025 vs Q1 2025, in millions) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Revenue | $2,300 | $2,300 | +2% | | Operating Income | $312 | $352 | -11% | - Revenue increased due to higher drilling-related services globally, offset by decreased software sales and lower wireline activity in Middle East/Asia[9](index=9&type=chunk) - Operating income fell due to the seasonal roll-off of software sales and increased startup and mobilization costs across multiple product service lines[9](index=9&type=chunk) [Geographic Performance](index=2&type=section&id=Geographic%20Regions) North America revenue was flat at $2.3 billion, while international revenue grew 2% to $3.3 billion, driven by Latin America and Europe/Africa [North America](index=2&type=section&id=North%20America) North America revenue remained flat at $2.3 billion, with gains in Canada and US Land offset by declines in other areas North America Revenue (Q2 2025 vs Q1 2025, in millions) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Revenue | $2,300 | $2,200 | Flat | - Positive drivers included increased stimulation activity in Canada and higher fluid services and cementing in US Land[10](index=10&type=chunk) - These gains were offset by lower artificial lift activity in US Land, decreased fluid services and wireline activity in the Gulf of America, and lower software sales[10](index=10&type=chunk) [International](index=2&type=section&id=International) International revenue grew 2% to $3.3 billion, driven by Latin America (+9%) and Europe/Africa (+6%), offsetting Middle East/Asia decline International Revenue by Region (Q2 2025 vs Q1 2025, in millions) | Region | Q2 2025 Revenue | Sequential Change | | :--- | :--- | :--- | | **Total International** | **$3,300** | **+2%** | | Latin America | $977 | +9% | | Europe/Africa | $820 | +6% | | Middle East/Asia | $1,500 | -4% | - Latin America's growth was led by improved activity in Mexico and Brazil[12](index=12&type=chunk) - Europe/Africa's increase was primarily driven by higher activity in Norway[13](index=13&type=chunk) - The Middle East/Asia decrease was mainly due to lower activity in Saudi Arabia and Kuwait[14](index=14&type=chunk) [Technology and Corporate Highlights](index=3&type=section&id=Selective%20Technology%20%26%20Highlights) Halliburton returned capital via $250 million stock repurchases and dividends, while advancing key technologies and securing new contracts - The company returned capital to shareholders through **$250 million** in stock repurchases and dividends of **$0.17 per share**[18](index=18&type=chunk) - Won a contract with GeoFrame Energy for a geothermal and direct lithium extraction (DLE) project in East Texas[16](index=16&type=chunk) - Key technology advancements include a new intelligent fracturing process with Chevron, fully automated drilling with Nabors in Oman, and the launch of the EarthStar® 3DX look-ahead resistivity service[18](index=18&type=chunk) - Awarded a 5-year contract by Repsol Resources UK to support the full well lifecycle for its UK North Sea platform assets[18](index=18&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) Financial statements show sequential revenue growth but year-over-year decline, stable balance sheet, and positive operating cash flow for H1 2025 [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenue was $5.51 billion with $472 million net income; H1 2025 revenue was $10.93 billion with $676 million net income Three Months Ended Financial Summary (in millions) | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--- | :--- | :--- | :--- | | Total Revenue | $5,510 | $5,833 | $5,417 | | Total Operating Income | $727 | $1,032 | $431 | | Net Income Attributable to Company | $472 | $709 | $204 | Six Months Ended Financial Summary (in millions) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Total Revenue | $10,927 | $11,637 | | Total Operating Income | $1,158 | $2,019 | | Net Income Attributable to Company | $676 | $1,315 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $25.38 billion, with total liabilities at $14.83 billion and stable shareholders' equity Balance Sheet Summary (in millions) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $11,671 | $12,382 | | Total Assets | $25,377 | $25,587 | | Total Current Liabilities | $5,844 | $6,050 | | Total Liabilities | $14,830 | $15,039 | | Total Shareholders' Equity | $10,547 | $10,548 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 operating cash flow was $1.27 billion, with $1.04 billion used in investing and $811 million in financing activities Six Months Ended Cash Flow Summary (in millions) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cash flows from operating activities | $1,273 | $1,568 | | Cash flows used in investing activities | $(1,040) | $(774) | | Cash flows used in financing activities | $(811) | $(838) | | Decrease in cash and equivalents | $(580) | $(126) | | Cash and equivalents at end of period | $2,038 | $2,138 | [Reconciliation of Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) Reconciliations clarify non-GAAP measures, showing Q1 2025 adjusted operating income of $787 million and Q2 2025 free cash flow of $582 million [Reconciliation of Operating Income to Adjusted Operating Income](index=10&type=section&id=Reconciliation%20of%20Operating%20Income%20to%20Adjusted%20Operating%20Income) Q1 2025 adjusted operating income was $787 million, excluding $356 million in pre-tax charges for severance and asset impairments Operating Income Reconciliation (in millions) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Operating Income (GAAP) | $727 | $431 | | Impairments and other charges | $— | $356 | | **Adjusted Operating Income (Non-GAAP)** | **$727** | **$787** | - The Q1 2025 charges of **$356 million** consisted of severance costs (**$107M**), impairment of assets held for sale (**$104M**), impairment of real estate (**$53M**), and other items (**$92M**)[43](index=43&type=chunk) [Reconciliation of Net Income to Adjusted Net Income](index=12&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) Q1 2025 adjusted net income was $517 million ($0.60 per diluted share), excluding $356 million in pre-tax charges Net Income Reconciliation (in millions, except per share data) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Income (GAAP) | $472 | $204 | | Adjustments, net of taxes | $— | $313 | | **Adjusted Net Income (Non-GAAP)** | **$472** | **$517** | | Diluted EPS (GAAP) | $0.55 | $0.24 | | **Adjusted Diluted EPS (Non-GAAP)** | **$0.55** | **$0.60** | [Reconciliation of Cash Flows from Operating Activities to Free Cash Flow](index=14&type=section&id=Reconciliation%20of%20Cash%20Flows%20from%20Operating%20Activities%20to%20Free%20Cash%20Flow) Free cash flow for Q2 2025 was $582 million, and $706 million for H1 2025, calculated from operating cash flow less capital expenditures Free Cash Flow Reconciliation (in millions) | Metric | Q2 2025 | H1 2025 | | :--- | :--- | :--- | | Cash flows from operating activities | $896 | $1,273 | | Capital expenditures | $(354) | $(656) | | Proceeds from sales of PP&E | $40 | $89 | | **Free Cash Flow (Non-GAAP)** | **$582** | **$706** |

Core Viewpoint - Halliburton Company (HAL) is expected to report second-quarter earnings on July 22, with a consensus estimate of 56 cents per share and revenues of $5.4 billion, reflecting a challenging operating environment primarily due to North American market pressures and declining margins in its Drilling & Evaluation division [1][8]. Group 1: Q1 Performance and Trends - In the first quarter, Halliburton met the consensus estimate with an adjusted net income of 60 cents per share and revenues of $5.4 billion, surpassing the Zacks Consensus Estimate of $5.3 billion [2]. - Over the last four quarters, Halliburton has beaten the Zacks Consensus Estimate once and matched it three times, with the second-quarter estimate indicating a 30% year-over-year decline in earnings and a 6.7% decrease in revenues [3]. Group 2: Factors Influencing Q2 Performance - The North American business is under pressure due to weaker commodity prices and customer uncertainty, with expected sales of $2.3 billion, representing a 6.6% year-over-year decline [4]. - The projected gross profit for the second quarter is $846.8 million, down nearly 25% from the previous year, attributed to a significant margin decline in the Drilling & Evaluation division, with an estimated operating margin of 13.8%, down 280 basis points [5]. Group 3: Strategic Developments - Halliburton's shift towards digitalization and integrated services is gaining traction, particularly with the Zeus IQ platform, which enhances automation and efficiency in hydraulic fracturing, potentially stabilizing revenues and improving client relationships [6][8].

Core Viewpoint - Halliburton is facing a challenging earnings outlook with expected declines in both earnings per share and revenue for the upcoming quarter and full year, indicating potential underperformance in the market [2][3]. Group 1: Earnings Performance - Halliburton is expected to report earnings of $0.56 per share on July 22, 2025, reflecting a year-over-year decline of 30% [2]. - The projected revenue for the upcoming quarter is $5.45 billion, down 6.57% from the previous year [2]. - For the full year, earnings are projected at $2.35 per share and revenue at $21.81 billion, showing declines of -21.4% and -4.92% respectively [3]. Group 2: Analyst Revisions and Market Sentiment - Recent revisions to analyst forecasts for Halliburton are crucial as they often indicate shifts in short-term business dynamics [3]. - The consensus EPS projection has decreased by 0.84% in the past 30 days, leading to a Zacks Rank of 5 (Strong Sell) for Halliburton [5]. Group 3: Valuation Metrics - Halliburton is currently trading at a Forward P/E ratio of 9.84, which is below the industry average of 15.56 [6]. - The company has a PEG ratio of 3.64, compared to the industry average PEG ratio of 3.59 [6]. Group 4: Industry Context - The Oil and Gas - Field Services industry, which includes Halliburton, has a Zacks Industry Rank of 233, placing it in the bottom 6% of over 250 industries [7]. - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, indicating that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7].

Market Capitalization Summary - Oracle has a market capitalization of 806.88 billion, while Visa stands at 655.99 billion [2] - Procter & Gamble has a market capitalization of 378.02 billion, and ExxonMobil is at 512.70 billion [2] - Mastercard's market capitalization is 470.87 billion, and Bank of America is at 375.11 billion [2] - UnitedHealth has a market capitalization of 308.53 billion, while ASML is at 310.77 billion [2] - Coca-Cola's market capitalization is 295.75 billion, and T-Mobile US Inc is at 273.60 billion [2] Stock Performance - Oracle's stock increased by 0.46 (+0.47%), while Visa's rose by 0.47 (+0.13%) [2] - Procter & Gamble's stock saw a slight increase of 2.68 (+0.48%), while ExxonMobil's stock increased by 1.92 (+1.20%) [2] - Mastercard's stock increased by 1.46 (+1.35%), and Bank of America's stock rose by 3.15 (+2.06%) [2] - UnitedHealth's stock decreased by 11.21 (-1.40%), while ASML's stock increased by 0.93 (+1.31%) [2] - Coca-Cola's stock increased by 14.05 (+4.50%), and T-Mobile US Inc's stock rose by 3.31 (+1.39%) [2] Additional Company Insights - McDonald's has a market capitalization of 212.78 billion, while AT&T is at 207.73 billion [3] - Uber's market capitalization is 192.79 billion, and Verizon's is at 184.08 billion [3] - Caterpillar's market capitalization is 183.87 billion, while Qualcomm is at 174.99 billion [3] - BlackRock has a market capitalization of 163.25 billion, and Citigroup is at 161.13 billion [3] - Boeing's market capitalization is 158.16 billion, while Pfizer is at 142.36 billion [3] Recent Market Movements - Intel's stock increased by 0.45 (+1.99%), while Dell Technologies rose by 0.82 (+0.16%) [4] - Rio Tinto's market capitalization is 746.07 billion, and Newmont is at 654.78 billion [4] - General Motors has a market capitalization of 494.87 billion, while Target is at 472.00 billion [4] - Ford's market capitalization is 451.14 billion, and Valero Energy is at 432.26 billion [4] - Vodafone's market capitalization is 241.45 billion, while Pinterest is at 270.30 billion [5]

Company Performance - Halliburton (HAL) closed at $20.64, reflecting a +1.88% increase from the previous day, outperforming the S&P 500's daily gain of 0.8% [1] - Over the past month, Halliburton's shares have gained 2.01%, while the Oils-Energy sector increased by 3.8% and the S&P 500 rose by 5.12% [1] Upcoming Earnings - Halliburton's earnings report is expected on July 22, 2025, with projected earnings of $0.57 per share, indicating a year-over-year decline of 28.75% [2] - The consensus estimate for revenue is $5.46 billion, representing a 6.42% decrease compared to the same quarter of the previous year [2] Full-Year Estimates - The Zacks Consensus Estimates for Halliburton's full-year earnings are $2.37 per share and revenue of $21.87 billion, reflecting year-over-year changes of -20.74% and -4.7%, respectively [3] - Recent changes to analyst estimates may indicate shifting near-term business trends, with positive revisions seen as a favorable sign for the business outlook [3][4] Valuation Metrics - Halliburton currently has a Zacks Rank of 4 (Sell), with a 1.21% decline in the Zacks Consensus EPS estimate over the past month [5] - The company is trading at a Forward P/E ratio of 8.54, which is below the industry average Forward P/E of 15.74 [5] - Halliburton's PEG ratio stands at 3.16, compared to the Oil and Gas - Field Services industry's average PEG ratio of 3.33 [6] Industry Context - The Oil and Gas - Field Services industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 187, placing it in the bottom 24% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations, particularly focusing on Halliburton (HAL), and emphasizes the importance of using these recommendations in conjunction with other analytical tools for making investment decisions [1][5]. Group 1: Halliburton's Brokerage Recommendations - Halliburton has an average brokerage recommendation (ABR) of 1.74, indicating a position between Strong Buy and Buy, based on recommendations from 27 brokerage firms [2]. - Out of the 27 recommendations, 16 are classified as Strong Buy, accounting for 59.3%, while 2 are classified as Buy, making up 7.4% of the total recommendations [2]. Group 2: Limitations of Brokerage Recommendations - Solely relying on brokerage recommendations may not be advisable, as studies indicate they often fail to guide investors effectively towards stocks with high potential for price appreciation [5]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, with five "Strong Buy" recommendations for every "Strong Sell" recommendation, which may mislead investors [6][10]. Group 3: Zacks Rank vs. ABR - The Zacks Rank is a proprietary stock rating tool that classifies stocks into five groups based on earnings estimate revisions, providing a more reliable indicator of near-term price performance compared to ABR [8][11]. - Unlike ABR, which is based solely on brokerage recommendations, the Zacks Rank is updated frequently to reflect changes in earnings estimates, making it a timely tool for predicting future price movements [12]. Group 4: Current Earnings Estimates for Halliburton - The Zacks Consensus Estimate for Halliburton's current year earnings has declined by 1.2% over the past month to $2.37, indicating growing pessimism among analysts regarding the company's earnings prospects [13]. - This decline in earnings estimates has resulted in a Zacks Rank of 4 (Sell) for Halliburton, suggesting caution despite the Buy-equivalent ABR [14].

Core Insights - Halliburton Company (HAL) has secured a significant contract to support GeoFrame Energy's lithium extraction and geothermal project in East Texas, with operations set to begin in late 2025 [1][10] - The project aims to produce approximately 83,500 metric tons of battery-grade lithium carbonate annually, which is expected to meet the current U.S. demand entirely [1][10] - This initiative is anticipated to enhance domestic lithium production and decrease reliance on foreign supply chains [1] Group 1: Project Details - Halliburton will lead the drilling phase by designing, constructing, and operating the demonstration wells, playing a central role in scaling the project to full field development [2][10] - GeoFrame's project is designed to be the first in the U.S. to deliver battery-grade lithium carbonate from the Smackover Formation, focusing on sustainable mining practices [3] - The facility will utilize geothermal brine to generate zero-emission electricity, which will power the lithium production process and allow surplus energy to be sold to the grid [3] Group 2: Halliburton's Position - Halliburton's extensive experience in well construction and its strong commitment to innovative energy solutions position the company uniquely to advance GeoFrame's vision [4] - The recent contract highlights the growing convergence between energy services and advanced technology solutions, enhancing Halliburton's growth initiatives [5] - Securing new contracts is expected to create a positive financial outlook for Halliburton and its stakeholders [5]

Core Insights - Halliburton Company (HAL) has formed a strategic collaboration with Petronas Carigali to implement advanced technologies for subsurface modeling and reservoir management [1][6] - The partnership focuses on utilizing Halliburton Landmark's DecisionSpace 365 Geosciences Suite and Unified Ensemble Modeling solutions to enhance operational efficiency and reduce time to first oil [1][9] Technology Deployment - The collaboration introduces scalable, live-earth modeling and probabilistic ensemble forecasting, moving away from traditional grid-based methods [2] - These technologies facilitate real-time collaboration among Petronas' exploration and asset teams, leading to improved reserve estimation and faster scenario analysis [2][9] - The Unified Ensemble Modeling solution allows asset teams to automatically generate multiple probabilistic geological scenarios, enhancing forecasting accuracy and decision-making confidence [3][5] Advantages of Halliburton's Technology - Halliburton's Geosciences Suite is an AI-driven technology that optimizes returns and enhances subsurface understanding, supporting better collaboration and productivity [4] - The technology aims to mitigate errors and data gaps while ensuring seamless integration and reducing redundancy [4] Alignment with Petronas' Objectives - The collaboration aligns with Petronas' vision for faster project delivery and seamless continuity from exploration through production [6] - It builds on a comprehensive benchmarking of Petronas' practices across both greenfield and mature assets [6] Company Overview - Halliburton is one of the largest oilfield service providers globally, offering a range of services to the energy, industrial, and government sectors [7] - Currently, Halliburton holds a Zacks Rank 4 (Sell) [7]

Core Insights - The article highlights the investment strategies of Paul Franke, a seasoned investor with 39 years of trading experience, emphasizing his contrarian stock selection style and the development of a system called "Victory Formation" for identifying stocks based on supply/demand imbalances [1] Group 1: Investment Strategies - Paul Franke suggests using 10% or 20% stop-loss levels on individual stock choices and recommends a diversified approach by owning at least 50 well-positioned stocks to achieve regular outperformance in the stock market [1] - The "Bottom Fishing Club" articles focus on deep value candidates or stocks that are experiencing significant upward technical momentum reversals [1] - The "Volume Breakout Report" articles discuss positive trend changes supported by strong price and volume trading actions [1] Group 2: Performance Recognition - Paul Franke was consistently ranked among the top investment advisors nationally during the 1990s and achieved the 1 position in the Motley Fool® CAPS stock picking contest during parts of 2008 and 2009, out of over 60,000 portfolios [1] - As of June 2025, he was ranked in the Top 4% of bloggers by TipRanks® for 12-month stock picking performance based on suggestions made over the last decade [1]