Halliburton Tops Estimates on Strong US Performance

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Halliburton Co. (NYSE: HAL) reported third-quarter 2017 results before markets opened Monday morning. The oil and gas services company posted adjusted diluted earnings per share (EPS) of $0.42 on revenues of $5.44 billion. In the same period a year ago, the company reported EPS of $0.01 on revenues of $3.83 billion. The results also compare to consensus estimates for EPS of $0.37 per share and $5.35 billion in revenues.

GAAP operating income totaled $634 million, up from $128 million last year and up from $146 million in the second quarter, when the company wrote down $262 million associated with a fair market value adjustment related to Venezuela.

North American revenues rose 14% sequentially from the second quarter. The company attributed the growth primarily to increased utilization and pricing throughout the United States land sector in the majority of our product service lines, primarily pressure pumping, as well as higher well completion and pressure pumping activity in Canada. Revenues rose 4% sequentially in the company’s international operations.

President Jeff Miller said:

We had a strong quarter and I am very pleased with our results. Our North American business is hitting on all cylinders and our international business proved resilient in a challenging environment. … We outgrew our peers on a global basis demonstrating that we are taking market share globally, and we generated industry leading returns.

The company did not provide guidance in its earnings release, but fourth-quarter 2017 consensus estimates call for EPS of $0.46 on revenues of $5.61 billion. For the full year, EPS is forecast at $1.12 on revenues of $20.16 billion.

Halliburton’s well completion and production segment posted operating income of $525 million in the third quarter, compared with an operating profit of $397 million in the second quarter and profit of $24 million in the third quarter of last year.

Operating profits from drilling services rose from $151 million a year ago to $180 million, up 44% compared to a $125 million profit in the second quarter of this year.

Halliburton’s stock closed at $43.33 on Friday, down about 0.2% for the day. Shares traded up about 3.2% in Monday’s premarket session at $44.70. The stock’s 52-week range is $38.18 to $58.78. The consensus 12-month price target was $53.48 before this morning’s report.

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