Halliburton (HAL) Q2 Earnings on Deck: Here's How It Will Fare

Core Viewpoint - Halliburton Company (HAL) is expected to report second-quarter results on July 19, with a consensus estimate of $0.80 earnings per share and $6 billion in revenues, reflecting a year-over-year improvement in earnings and revenues [1][4]. Group 1: Previous Quarter Performance - In the last reported quarter, Halliburton achieved an adjusted net income per share of $0.76, surpassing the consensus estimate of $0.74, with revenues of $5.8 billion exceeding estimates by approximately $121 million [2]. - Halliburton has consistently beaten consensus estimates in the last four quarters, resulting in an average earnings surprise of 3.9% [2]. Group 2: Estimate Revisions and Trends - The Zacks Consensus Estimate for the second-quarter earnings has remained unchanged over the past week, indicating a 3.9% improvement year-over-year, while revenue estimates suggest a 2.6% increase from the previous year [4]. Group 3: Factors Influencing Performance - The U.S. oil and natural gas rig count has declined by around 15% year-over-year, negatively impacting drilling activity, which is crucial for service companies like Halliburton [5]. - The expected revenues for the North American region are projected at $2.6 billion, reflecting a 2.1% decrease from the previous year due to a challenging operating environment [5]. - Halliburton's cost of sales for the second quarter is anticipated to be $4.8 billion, up 1.9% from the previous year, influenced by inflationary pressures [6]. Group 4: Segment Performance - The projected operating income for the Drilling & Evaluation segment is estimated at $417.3 million, representing an 11% improvement year-over-year, driven by strategic positioning in key markets [6]. Group 5: Earnings Expectations - The Zacks model indicates uncertainty regarding Halliburton's ability to beat earnings estimates, with an Earnings ESP of -0.23% and a Zacks Rank of 4 (Sell) [7].