Halliburton Prepares for Fourth Quarter Earnings Release Amid Mixed Expectations
On the eve of its earnings report, analysts predict a drop in Halliburton’s profits.
Halliburton Company (HAL), based in Houston, Texas, ranks among the top providers of products and services in the energy sector. With a market cap of $23.9 billion, the company is known for enhancing efficiency in oil and gas exploration, development, and production through innovative solutions. Halliburton is scheduled to announce its fourth-quarter earnings before the market opens on Wednesday, Jan. 22.
Analysts forecast that Halliburton will report a profit of $0.70 per share, reflecting a decrease of 18.6% from $0.86 in the same quarter last year. Historically, Halliburton has performed well, beating or matching consensus estimates in three of the last four quarters, though it missed expectations once.
In its previous quarter, the company reported adjusted earnings of $0.73 per share, falling short of expectations by 2.7%. This shortfall was attributed to weaker international revenue and a decline in demand for drilling services.
Looking ahead to fiscal 2024, analysts predict Halliburton will achieve an EPS of $2.99, down 4.5% from $3.13 in fiscal 2023. However, there is optimism for fiscal 2025, with EPS expected to rebound to $3.05, a 2% increase year-over-year.
Despite these forecasts, Halliburton’s stock has faced challenges, dropping 23.2% over the past year. In comparison, the S&P 500 Index ($SPX) has seen a 23.7% gain and the Energy Select Sector SPDR Fund (XLE) has returned 2.3% during the same period.
On January 2, Halliburton’s stock rose more than 1% as energy stocks rallied, spurred by a 1% increase in WTI crude oil prices reaching a 2.5-month high. However, after the company’s Q3 earnings report on Nov. 7, 2024, which revealed revenue of $5.7 billion—below the anticipated $5.83 billion—its stock dropped 3.1%. That quarter also saw a 1.8% decline in revenue compared to the previous year, with adjusted operating income of $987 million.
The overall sentiment surrounding HAL stock remains cautiously optimistic, with an average consensus rating of “Moderate Buy.” Among the 25 analysts tracking the stock, 17 recommend a “Strong Buy,” one suggests a “Moderate Buy,” and seven have rated it as a “Hold.”
Currently, HAL’s average analyst price target is $36.82, implying a potential upside of 32.8% from its present price.
On the date of publication, Rashmi Kumari did not hold any positions in the securities mentioned in this article. All information and data herein are provided for informational purposes only. For further details, view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
