Core Insights - Halliburton Company (HAL) is set to report its fiscal 2025 Q3 earnings on October 21, with analysts expecting a profit of $0.50 per share, a decrease of 31.5% from $0.73 per share in the same quarter last year [2] - For fiscal 2025, HAL is projected to report a profit of $2.11, down 29.4% from $2.99 in fiscal 2024 [3] - HAL's stock has declined 18.4% over the past 52 weeks, underperforming the Energy Select Sector SPDR Fund's 2.5% decline and the S&P 500 Index's 17.6% increase during the same period [4] Company Performance - The company has matched the Street's bottom-line projections in three of the past three quarters, while missing on one occasion [2] - On October 2, Halliburton shares dropped more than 2% due to a sharp decline in crude oil prices to a four-month low [5] Analyst Ratings - Wall Street analysts have a moderately optimistic outlook on HAL's stock, with an overall "Moderate Buy" rating [5] - Among 25 analysts covering HAL, 14 recommend "Strong Buy," two suggest "Moderate Buy," eight advise "Hold," and one recommends "Strong Sell" [5] - HAL's average analyst price target of $27.39 indicates a potential upside of 12.3% from current levels [5]

Core Viewpoint - Halliburton's recent earnings report indicates a decline in performance, particularly in North America, while international operations show mixed results. The company faces challenges in the oilfield services market but remains committed to shareholder returns and strategic growth initiatives [3][8]. Financial Performance - Halliburton reported Q2 2025 adjusted net income per share of 55 cents, matching the Zacks Consensus Estimate but down from 80 cents in the previous year. Revenues were $5.5 billion, a 5.5% decrease year over year, yet slightly above the consensus estimate by 1.1% [3]. - North American revenues fell 9% year over year to $2.3 billion, missing projections by nearly $60 million. International revenues decreased 3% to $3.3 billion but exceeded estimates of $3.1 billion [4]. - The Completion and Production segment's operating income dropped to $513 million from $723 million, attributed to lower stimulation service prices and reduced activity in the Middle East [5]. - The Drilling and Evaluation unit's profit decreased to $312 million from $403 million, impacted by seasonal software sales slowdowns and high startup costs [6]. Balance Sheet and Cash Flow - Halliburton's Q2 capital expenditure was $354 million, exceeding projections. The company had approximately $2 billion in cash and $7.2 billion in long-term debt, with a debt-to-capitalization ratio of 40.4. It repurchased $250 million of its stock and generated $896 million in cash flow from operations, resulting in free cash flow of $582 million [7]. Management Outlook - Management anticipates a softer oilfield services market in the near to medium term, with mixed international activity. The company aims to outperform peers in North America through scale, technology, and service execution [8]. Estimate Trends - There has been a downward trend in consensus estimates, with a shift of -12.65% noted in the past month [9]. VGM Scores - Halliburton holds a Growth Score of B, a Momentum Score of F, and a Value Score of A, placing it in the top quintile for value investment strategy. The aggregate VGM Score is A, indicating overall strong performance in this category [10]. Overall Outlook - Estimates for Halliburton have been trending downward, leading to a Zacks Rank of 4 (Sell), suggesting expectations of below-average returns in the coming months [11].