Halliburton (HAL) Q1 Earnings Beat on International Strength

Core Viewpoint - Halliburton Company reported strong first-quarter 2024 results, with adjusted net income per share of 76 cents, exceeding expectations and showing year-over-year improvement, driven by international market strength despite weak North American performance [1] Financial Performance - Adjusted net income per share was 76 cents, surpassing the Zacks Consensus Estimate of 74 cents and improving from 72 cents in the prior year [1] - Revenues reached $5.8 billion, a 2.2% increase from the same period in 2023, and above the Zacks Consensus Estimate of $5.7 billion [1] - North American revenues fell 7.9% year over year to $2.4 billion, below the projected $2.6 billion, while international revenues rose 11.9% to $3.3 billion, exceeding the estimate of $3.1 billion [2] Segment Performance - Operating income from the Completion and Production segment was $688 million, up from $666 million year-over-year and above the projection of $660.4 million, driven by improved sales and activity in various regions [2] - Drilling and Evaluation unit profit increased from $369 million in Q1 2023 to $398 million in Q1 2024, attributed to higher drilling-related services in the Middle East and North America [3] Capital Expenditure and Cash Flow - Capital expenditure for the first quarter was $330 million, lower than the projected $338.7 million [5] - The company generated $487 million in cash flow from operations, leading to free cash flow of $206 million [5] - Halliburton had approximately $1.9 billion in cash and cash equivalents and $7.6 billion in long-term debt, with a debt-to-capitalization ratio of 44.1% [5] Management Insights and Outlook - Management emphasized that the company's strategy and execution were key to strong results, noting a rebound in North American activity and consistent international growth for 11 consecutive quarters [6] - Halliburton generated $2.3 billion in free cash flow in 2023 and sees clients' multi-year activity plans as indicative of a strong upcycle [6]