Halliburton Revenue Hit by Challenges

Core Insights - Halliburton missed analyst expectations for Q3 2024, reporting revenue of $5.7 billion, below the estimated $5.83 billion, due to operational challenges [1][2] - The company recorded a diluted EPS of $0.65, falling short of the forecast of $0.753, marking a year-over-year decline of 17.8% [2][3] Financial Performance - Revenue for Q3 2024 was $5.697 billion, a decrease of 1.8% from Q3 2023's $5.804 billion [3] - Completion and Production revenue was $3.299 billion, down 5.4% sequentially, while Drilling and Evaluation revenue was $2.398 billion, down 1.3% [3][6] - Operating income for the Completion and Production segment fell by 7% to $669 million, while the Drilling and Evaluation segment saw a slight increase in operating income to $406 million [6][7] Operational Challenges - The company faced significant operational challenges, including cyber incidents and adverse weather conditions, which impacted revenue and operational continuity [1][7] - A cyberattack and storms in the Gulf of Mexico notably affected operations, resulting in a $0.02 hit to EPS [7] Regional Performance - North America experienced a 4% sequential revenue decline to $2.4 billion, influenced by reduced pressure pumping activities and storm disruptions [8] - International revenue remained steady at $3.3 billion, with the Middle East/Asia region seeing a 3% increase due to enhanced operations in Saudi Arabia [8] Strategic Initiatives - Halliburton is focusing on technological advancements to optimize operations and enhance service offerings, including digital and automation solutions [5] - The company initiated a $200 million stock repurchase plan and incurred $28 million in capital expenditures for digital infrastructure migration [9] Future Outlook - Management remains optimistic about strong free cash flow and sustained shareholder returns, driven by international growth and technological advancements [10] - Investors are encouraged to monitor developments in digital technology initiatives and international market expansion as key growth areas [11]