The analyst firm also raised its EPS estimates for the company through 2016. Halliburton's record activity should continue to grow according to analysts James Wicklund, Jonathan Sisto, and Brittany Commins.
"The global oil service business is operating at record levels of activity, revenues for the industry are forecasted to grow by at least 5%-7% for the foreseeable future," the analysts wrote. "HAL is expected to grow ~50% faster than the nominal growth in rig count due to integration of technologies and capabilities, excellent execution, and significant efficiency programs that are driven by a ROIC-focused culture. After the call, we continue to have a positive outlook on HAL because of the record activity that is expected to continue to grow."
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Separately, TheStreet Ratings team rates HALLIBURTON CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HALLIBURTON CO (HAL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, solid stock price performance, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 3555.6% when compared to the same quarter one year prior, rising from -$18.00 million to $622.00 million.
- HAL's revenue growth trails the industry average of 20.5%. Since the same quarter one year prior, revenues slightly increased by 5.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 7400.00% and other important driving factors, this stock has surged by 59.37% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- Net operating cash flow has significantly increased by 173.35% to $954.00 million when compared to the same quarter last year. In addition, HALLIBURTON CO has also vastly surpassed the industry average cash flow growth rate of -80.13%.
- HALLIBURTON CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HALLIBURTON CO reported lower earnings of $2.37 versus $2.77 in the prior year. This year, the market expects an improvement in earnings ($3.98 versus $2.37).
- You can view the full analysis from the report here: HAL Ratings Report