What's Next For Halliburton's Stock Post Mixed Q4 Results?

Core Viewpoint - Halliburton's fourth-quarter earnings report showed mixed results, with non-GAAP earnings per share slightly exceeding expectations, but revenue falling short, indicating challenges in the current market environment [1][2]. Financial Performance - Halliburton's Q4 non-GAAP earnings per share were $0.70, surpassing analyst expectations by $0.01, while revenue was $5.6 billion, missing forecasts by $30 million, reflecting a 2.4% year-over-year decline [1]. - For fiscal year 2024, Halliburton's revenue remained steady at $22.9 billion, but overall operating income declined by 6% year-over-year to $3.8 billion [5]. Regional Performance - North America experienced a 7% sequential and 9% year-over-year decrease in revenue to $2.2 billion, attributed to reduced hydraulic fracturing activity [3]. - International revenue increased by 2% year-over-year to $3.4 billion, with notable growth in the Middle East/Asia region, which saw a 9% year-over-year increase [3]. Market Outlook - Halliburton's stock is projected to have upside potential in the long run, with a forecasted revenue of $23.1 billion for fiscal year 2025 and expected EPS of $2.95, leading to a revised valuation of $31 per share [2]. - The company is focusing on growth areas through internal product development, particularly in its artificial lift product line, which is growing at double the rate of the rest of the business in international markets [5]. Industry Factors - The global oil market is expected to be influenced by a rebound in China's oil demand, geopolitical factors affecting supply, and rising output from non-OPEC countries, which may limit price increases [6]. - The International Energy Agency has revised its 2025 oil demand growth projection downward to 1.05 million barrels per day, although demand is still expected to surpass last year's growth [7].