NEW YORK (TheStreet) -- Halliburton (HAL) was falling 2.1% to $49.61 on Tuesday after the oilfield services company forecast declines across multiple service areas this year.
Houston-based Halliburton expects a seasonal decline in international sales and net income in the first quarter as a result of fewer software and equipment sales and weather-related issues in the North Sea, the company said in a statement. Halliburton does expect margins to improve in the second quarter and anticipates a rebound in Eastern hemisphere activity levels. Halliburton also foresees a larger-than-usual seasonal decline in Latin America because of higher costs in Brazil and the gradual decline of the Mexico Southern Alliance 2 project.
Halliburton reported fourth-quarter earnings of 93 cents a share minus non-recurring items. Revenues also increased 4.8% year-over-year to $7.64 billion. Adjusted operating income increased 2% sequentially thanks to record revenue in the Middle East, Asia, Europe, Africa and Commonwealth of Independent States.
TheStreet Ratings team rates HALLIBURTON CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate HALLIBURTON CO (HAL) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."