Halliburton's Soft Revenue Lags Estimates, Goldman Sachs Analyst Seeks Clarity On 2025 Activities

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]