Company Performance - Halliburton reported quarterly earnings of $0.73 per share, missing the Zacks Consensus Estimate of $0.75 per share, and down from $0.79 per share a year ago, representing an earnings surprise of -2.67% [1] - The company posted revenues of $5.7 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 2.20%, and down from $5.8 billion year-over-year [2] - Over the last four quarters, Halliburton has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - Halliburton shares have lost about 15.6% since the beginning of the year, while the S&P 500 has gained 24.3% [3] - The current Zacks Rank for Halliburton is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.80 on revenues of $5.9 billion, and for the current fiscal year, it is $3.12 on revenues of $23.37 billion [7] - The estimate revisions trend for Halliburton is currently unfavorable, which may impact future stock movements [6] Industry Context - The Oil and Gas - Field Services industry, to which Halliburton belongs, is currently in the bottom 43% of the Zacks industry rankings, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could affect Halliburton's stock performance [5]

Financial Performance - Halliburton reported net income of $571 million, or $0.65 per diluted share, for Q3 2024, a decrease from $709 million, or $0.80 per diluted share, in Q2 2024[1]. - Total revenue for Q3 2024 was $5.7 billion, down from $5.8 billion in Q2 2024, with an operating margin of 15% and adjusted operating margin of 17%[1]. - Completion and Production revenue decreased by $102 million, or 3%, sequentially to $3.3 billion, while operating income fell by $54 million, or 7%, to $669 million[4]. - Drilling and Evaluation revenue remained flat at $2.4 billion, with operating income also flat at $406 million[5]. - North America revenue decreased by 4% sequentially to $2.4 billion, primarily due to reduced pressure pumping services and lower activity in the Gulf of Mexico[6]. - International revenue was flat at $3.3 billion, with Middle East/Asia showing a 3% increase to $1.5 billion[7][10]. - Halliburton's operating income for Q3 2024 was $871 million, down from $1,037 million in Q3 2023, reflecting a decrease of approximately 16.0%[39]. - Net income attributable to the company for Q3 2024 was $571 million, a decrease of 20.2% from $716 million in Q3 2023[41]. - Adjusted operating income for the nine months ended September 30, 2024, was $3,006 million, compared to $3,025 million for the same period in 2023, indicating a slight decline of about 0.6%[40]. - Net income attributable to the company for the nine months ended September 30, 2024, was $1,886 million, down from $1,977 million in 2023, representing a decrease of 4.59%[36]. - Basic and diluted net income per share decreased to $2.13 in 2024 from $2.19 in 2023[36]. - Halliburton recognized total impairments and other charges of $116 million during Q3 2024, which included severance costs and a cybersecurity incident[39]. Cash Flow and Shareholder Returns - Halliburton expects free cash flow and cash return to shareholders to accelerate in Q4 2024 despite a $0.02 per share impact from a cybersecurity event and storms[1]. - Cash flows provided by operating activities for the nine months ended September 30, 2024, were $2,409 million, an increase of 17.6% compared to $2,048 million in 2023[32]. - Free cash flow for the nine months ended September 30, 2024, was $1,542 million, an increase from $1,204 million in the same period of 2023, reflecting a growth of about 28.1%[49]. - Total cash flows provided by operating activities for Q3 2024 were $841 million, up from $841 million in Q3 2023[49]. - Halliburton repurchased approximately $200 million of its common stock and paid dividends of $0.17 per share during Q3 2024[11]. Capital Expenditures and Assets - Capital expenditures for the nine months ended September 30, 2024, were $1,016 million, compared to $980 million in 2023, reflecting an increase of 3.67%[32]. - Total current assets increased to $12,043 million in 2024 from $11,543 million in 2023, marking an increase of 4.34%[29]. - Total liabilities decreased to $14,979 million in 2024 from $15,250 million in 2023, a reduction of 1.77%[30]. Contracts and New Technologies - A multi-year contract was awarded by Petrobras for integrated well interventions in Brazil, set to begin in Q2 2025[19]. - The company introduced several new technologies, including TrueSync™ and Octiv® Auto Frac service, aimed at enhancing operational efficiency and safety[14][15]. Upcoming Events - Halliburton will host a conference call on November 7, 2024, to discuss its third quarter 2024 financial results[51].

Group 1 - Following Donald Trump's election victory, oil stocks, particularly Halliburton (HAL), experienced a surge, with HAL stock rising over 6.7% [1] - Despite the recent surge, HAL is down 4% year-to-date, indicating underperformance for the year [1] - HAL is currently showing a historically bearish signal, suggesting potential further losses ahead [1] Group 2 - HAL has reached its 50-day moving average, a level it has encountered five times in the last three years [2] - The stock has traded above this moving average 80% of the time over the past two months, closing above it in eight of the last ten sessions [2] Group 3 - In previous instances when HAL approached this moving average, the stock averaged a one-month return of -8.2%, finishing lower 100% of the time [3] - If HAL experiences a similar decline from its current price of $30.44, it could drop below $28, near its October bottom [3] Group 4 - There is significant bullish sentiment in HAL, evidenced by a 10-day call/put volume ratio of 10.88, ranking in the 98th percentile of the past year [3] - The put/call open interest ratio for HAL is 0.90, indicating a low level of bearish sentiment, which could lead to headwinds if this bullish sentiment unwinds [3]

Halliburton Company (HAL) is set to release third-quarter results on Nov. 7. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a profit of 80 cents per share on revenues of $6 billion.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Let’s delve into the factors that might have influenced the oilfield service firm’s performance in the September quarter. But it’s worth taking a look at HAL’s previous-quarter performance first.Highlights of Q2 Earnings & Surprise Hi ...

Halliburton (HAL) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on November 7, 2024, might help the stock move higher if these key numbers are better tha ...

Core Insights - Halliburton Company (HAL) has launched the Octiv Auto Frac service, enhancing efficiency and safety in fracture operations through digitization and automation [1][8] - The Octiv Intelligent Fracturing Platform aims to streamline the fracturing process, traditionally reliant on manual input, by integrating advanced technologies [2][9] Key Features of Octiv Auto Frac Service - Enhanced operational consistency reduces variability and increases reliability, leading to more predictable outcomes in high-stakes environments [3] - Customers can execute fracture designs autonomously, minimizing human error and allowing for quicker job execution [3] - The system automates thousands of decisions in real-time during the pumping process, optimizing operations based on customer job designs [3] Benefits of Automation in Fracturing - Automation increases safety by reducing the number of personnel required onsite, thereby lowering accident risks [4] - The service lowers total cost of ownership for customers by eliminating variability and streamlining workflows [4] - The Auto Frac service adapts to increasing demands for larger and more intensive completions, ensuring HAL remains competitive [4] Integration with Other Services - The combination of Octiv Auto Frac, ZEUS electric fracturing platform, and Sensori Fracture Monitoring Service creates a comprehensive fracturing solution [5] - ZEUS enhances efficiency and environmental sustainability by reducing carbon footprint and emissions [6] - Sensori provides real-time monitoring, allowing operators to make informed decisions and optimize ongoing operations [7] Industry Impact & Future Outlook - HAL's advancements with Octiv Auto Frac signify a shift in the oil and gas sector towards automation and digitization, setting new standards for operational excellence [8] - Early adopters of the service are expected to see significant improvements in operations, efficiency, and cost reduction [8] - HAL's commitment to innovation is recognized by industry leaders, highlighting the transformative potential of this technology [8][9]

Core Viewpoint - Halliburton Company (HAL) has faced significant challenges leading to a 52-week low in its stock price, with a year-to-date decline of nearly 23%, contrasting with the S&P 500's rise of 17.8% [1][3] Group 1: Financial Performance - Halliburton's North American segment, which contributes over 40% of total revenues, saw an 8.0% year-over-year decline in Q2 2024 revenues due to weaker oil and gas activity [4][6] - Earnings estimates for HAL for 2024 have decreased by 6.5% to $3.14, while 2025 estimates have dropped by 9% to $3.55, indicating bearish sentiment [5][7] - The company anticipates a 6% to 8% decline in full-year North America revenues from 2023 due to lower rig counts and service activity levels [5] Group 2: Market Conditions - Crude oil prices have reached multi-year lows, with Brent and WTI prices at their lowest since December 2021, negatively impacting exploration and production activity [4] - The overall energy market is facing reduced demand and investment, which could further squeeze Halliburton's revenues, particularly in North America [4] Group 3: Cybersecurity Concerns - Halliburton has been affected by a cybersecurity breach that occurred on August 21, leading to unauthorized data access and potential long-term risks, including regulatory scrutiny and customer hesitancy [3][4] - Although the company claims the breach won't materially impact financials, the long-term costs related to cybersecurity management and reputation damage could affect future earnings [3]

Earlier this month, Halliburton Company HAL said that a cyberattack had disrupted its critical business applications.A lower overall revenue diversification puts the company at a disadvantage against the backdrop of a tepid commodity macro, according to RBC Capital Markets.Analyst Keith Mackey downgraded the rating for Halliburton from Outperform to Sector Perform, while slashing the price target from $44 to $37.The Halliburton Thesis: While the company's revenue growth outpaced large cap OFS peers from 202 ...

Core Viewpoint - Halliburton's stock has reached a 52-week low, raising discussions among investors about whether this presents a buying opportunity or signals further performance decline [1][2]. Financial Performance - Halliburton's stock price has dropped over 35% from a 52-week high of $43.85 in November 2023 to a low of $28.38, reflecting broader energy sector anxieties [2]. - The company reported Q2 2024 earnings with EPS meeting expectations at $0.80, but revenue of $5.83 billion fell short of estimates of $5.95 billion, indicating mixed results [4]. - Despite challenges, Halliburton achieved a 0.6% year-over-year revenue increase, with a return on equity (ROE) of 29.97% and a net margin of 11.61% [4]. Operational Challenges - A cybersecurity incident in August 2024 raised concerns about Halliburton's operational resilience, causing disruptions and ongoing costs related to remediation [3][5]. - The company acknowledged potential future impacts on earnings due to the cybersecurity breach, although it claims no material effect on its financial condition [5]. Strategic Direction - Halliburton is investing in new technologies, including digital solutions and AI applications, to enhance operational efficiency and align with industry trends towards digitalization [6]. - The company is expanding into the renewable energy sector, leveraging expertise in geothermal energy to diversify its offerings [6]. - Halliburton is actively pursuing strategic acquisitions to enhance market presence and access new technologies [7]. Analyst Sentiment - Analysts maintain a cautiously optimistic outlook, with a consensus rating of "Moderate Buy" and an average price target of $44.88, suggesting over 60% upside potential from the current price [8][9]. - The stock forecast indicates a high of $51.00 and a low of $40.00 based on 18 analyst ratings [9]. Investment Considerations - Halliburton's current valuation near its 52-week low may present an attractive entry point for long-term investors, supported by strong fundamentals and strategic positioning [12]. - The company’s commitment to technological advancement and market diversification is seen as a positive factor for future growth [10].

Core Viewpoint - Halliburton is navigating a complex energy environment with both positive and negative developments, including a significant contract with Petrobras and a recent cyberattack that may not materially impact its financials [2][16]. Group 1: Petrobras Contract - Halliburton secured a multi-year contract with Petrobras for offshore well intervention and plug and abandonment services, starting in Q2 2025, covering about two-thirds of Petrobras' related work [3]. - The contract aligns with Petrobras' aggressive capital expenditure plans, which are expected to peak at $17.1 billion in 2025, indicating potential for substantial earnings growth for Halliburton [4]. - Halliburton's revenue from Latin America was $1.1 billion in Q2 2024, accounting for 18.8% of total revenue, highlighting the importance of this region for the company [3][4]. Group 2: Cyberattack Incident - Halliburton experienced a cyberattack on August 21, 2024, which disrupted business operations but the company stated it is unlikely to have a material impact on financial results [5][7]. - The attack led to limited access to business applications and data breaches, raising concerns about potential litigation and customer behavior changes [5]. - Following the attack, Halliburton's stock declined by 7.9%, slightly worse than the broader oil and gas services ETF decline of 7.2% [7]. Group 3: Q2 Earnings Performance - Halliburton reported Q2 2024 earnings of $0.80 per share and revenue of $5.83 billion, missing sales estimates by $120 million and showing only a 0.6% year-over-year increase [8]. - North American operations faced an 8.0% year-over-year revenue decline, while international revenue grew by 8.1% year-over-year, indicating a shift in performance dynamics [8][10]. - The company maintained earnings growth through international segment expansion, with international revenues now accounting for 57.5% of total revenue [10]. Group 4: Energy Market Conditions - Energy market conditions are currently challenging, with Brent and WTI spot prices falling by 7.2% and 7.5% respectively, marking the lowest levels in nearly three years [12]. - Global rig counts have been declining, particularly in North America, while international rig counts have shown growth, suggesting a shift in operational focus for oil and gas services firms [14]. - Despite the decline in rig counts, the EIA projects an increase in oil and gas production in 2024 and 2025, which may influence market dynamics positively [15]. Group 5: Investment Outlook - The Petrobras contract is viewed as a significant positive for Halliburton, while the cyberattack is seen as a manageable risk that is unlikely to deter investor sentiment [16]. - Halliburton's diversified customer base and international growth position it well to weather the current low energy price environment [16]. - The stock is currently down 30.1% over the past year but trades at a forward P/E ratio of 9.0x, below the sector median, suggesting potential for recovery [16].