Halliburton Stock Is Going Up Because of Chevron, Cramer Says

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Halliburton’s second quarter earnings report was better than feared but was far from optimal.

The oil field service company reported a net loss of $1.7 billion or $1.91 per diluted share. This compares to the net loss of $1.0 billion or $1.16 per diluted share reported in the first quarter of 2020. Adjusted net income came in just around $46 million or 5 cents per share.

Total revenue for the second quarter was $3.2 billion, a 37% decrease from the $5 billion reported in the first quarter. North American revenue fell 57% from last year to $1 billion while international revenue fell 17% to $2.1 billion.

“Halliburton’s second quarter performance in a tough market shows we can execute quickly and aggressively to deliver solid financial results and free cash flow despite a severe drop in global activity," Halliburton CEO Jeff Miller said in the earnings release.

"Our results demonstrate a significant and sustainable reset to the power of our business to generate positive earnings and free cash flow,” Miller added.

Miller said strategic actions taken by management and the company’s ability to generate free cash flow will serve as tailwinds in the future. "Halliburton is charting a fundamentally different course," Miller said.

As of early trading Monday, Halliburton stock was up over 6% to $13.90. How should investors approach the stock?

At the end of the day, Jim Cramer said the stock and its peers are down so much, it doesn't really matter what Wall Street hears from management. Cramer said the stock is up on Chevron's deal news rather than its dismal earnings report. Catch his full take in the video above.  

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