Halliburton Up as Quarterly Adjusted Profit Beats Estimate

Halliburton's adjusted earnings -- profit excluding special items -- totaled 18 cents a share, besting the analyst consensus. The shares are higher.
Author:
Publish date:

Halliburton  (HAL) - Get Report shares rose on Tuesday after the oil-services giant reported stronger-than-expected fourth-quarter adjusted earnings.

Halliburton reported a GAAP net loss of $235 million, or 27 cents a share, in the fourth quarter, shrinking from a loss of $1.65 billion, or $1.88 a share, in the year-earlier quarter.

Excluding severance and other charges, adjusted earnings totaled 18 cents a share, besting the 15-cent FactSet analyst consensus. 

Revenue dropped 38% to $3.24 billion from $5.19 billion amid oil-industry weakness. But the latest figure topped the analyst consensus of $3.21 billion.

Halliburton posted $446 million of pretax impairments and other charges in the quarter, stemming mostly from a planned structured transaction for its North American real estate assets.

Halliburton recently traded at $21.22, up 2.3%. The shares fell 13% in the past year through Friday.

“I am optimistic about the activity momentum I see in North America, and expect international activity to bottom in the first quarter,” Chief Executive Jeff Miller said in a statement. “I am also encouraged by the growing pipeline of international customer opportunities and the unfolding global activity recovery.”

Morningstar analyst Preston Caldwell puts fair value at $26. That's 25% upside potential from Friday's close.

“Halliburton’s U.S. shale focus presents a paradox," he said in a September report.

"On one hand, the company has long reaped rich harvests from its focus on U.S. shale, and these rewards have very much remained in place as U.S. shale activity has rebounded from the 2015-16 downturn. 

“On the other hand, the intense competitiveness of U.S. shale means that Halliburton’s U.S. shale profitability is likely to wither over time.”