Halliburton (HAL) Up 0.6% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Halliburton reported a mixed performance in its third-quarter earnings, with adjusted net income per share of 58 cents, surpassing estimates but declining from the previous year's profit of 73 cents due to reduced activity in North America [2][4]. Financial Performance - Adjusted net income per share for Q3 2025 was 58 cents, beating the Zacks Consensus Estimate of 50 cents, but down from 73 cents year-over-year [2]. - Revenues totaled $5.6 billion, a 1.7% decline year-over-year, yet exceeded the Zacks Consensus Estimate by 4% [2]. - North American revenues decreased by 0.9% to $2.4 billion, outperforming projections by over $246 million [3]. - International revenues fell by 2.3% to $3.2 billion, missing estimates of $3.3 billion [3]. Segment Performance - The Completion and Production segment reported operating income of $514 million, down from $669 million year-over-year but above the estimate of $449.5 million [4]. - The Drilling and Evaluation unit's profit decreased to $348 million from $406 million year-over-year, yet outperformed the estimate of $339 million [5]. Capital Expenditure and Cash Flow - Capital expenditure for Q3 was $261 million, significantly below the projected $323.8 million [6]. - The company generated $488 million in cash flow from operations, resulting in free cash flow of $276 million [6]. Management Strategy and Outlook - Halliburton aims to achieve approximately $100 million in quarterly savings and has reduced its 2026 capital budget by around 30% to $1 billion [7]. - The company is focusing on maximizing value through disciplined returns and advanced technologies, while also committing to returning cash to shareholders [7]. Estimate Revisions - There has been a notable upward trend in estimate revisions, with the consensus estimate shifting by 16.71% [9]. - Halliburton currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [11]. Industry Context - Halliburton operates within the Zacks Oil and Gas - Field Services industry, where competitor Liberty Oilfield Services reported a revenue decline of 16.8% year-over-year [12]. - Liberty Oilfield Services is projected to post a loss of $0.21 per share for the current quarter, reflecting a significant year-over-year change [13].