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Halliburton Rises on Second-Quarter Earnings Beat

Halliburton's CEO believes the company is 'in the early innings of a multi-year up-cycle.'

Halliburton  (HAL) - Get Halliburton Company (HAL) Report rose after beating Wall Street's second-quarter earnings expectations as the oilfield company reported growth in North America and internationally for the first time in seven years.

Shares of the Houston company traded up 2.7% to $19.90 at last check.

Halliburton posted net income of $227 million, or 26 cents a share, up from a loss of $1.7 billion million, or $1.91 a share, a year ago. Revenue came to $3.707 billion, up from the year-ago total of $3.196 billion. 

The FactSet consensus called for earnings of 22 cents a share and revenue of $3.710 billion

Completion and production revenue came to $2 billion, up 10% from a year ago. Drilling and evaluation revenue totaled $1.7 billion, up 5% from a year ago.

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"We believe that we are in the early innings of a multi-year up-cycle," said Chief Executive Jeff Miller, according to Reuters. "For the first time in seven years, we anticipate simultaneous growth in international and North America markets."

Miller said total company revenue increased 7% sequentially, as both North America and international markets continued to improve, and operating income grew 17% with solid margin performance in both divisions.

Halliburton said it expected revenue growth in the mid-teens over the next two years.

Barclays analyst Dave Anderson, who has an overweight rating on the shares, said in a research note that the bar was “pretty low” into earnings given energy stock weakness lately, so the company should outperform, according to Bloomberg.

Piper Sandler analyst Ian Macpherson said that given recent stock weakness, “perhaps a beat+raise provides some
ballast here." He has an overweight on the company.

In April, Halliburton reported stronger-than-expected earnings.