Extraordinary items pull Halliburton’s 3Q14 earnings up



Quarterly revenues up

In the previous section, we positioned Halliburton’s (HAL) earnings against market expectations. In this article, we’ll look at why its revenue and earnings went up during 3Q14.

Halliburton (HAL) recorded $8.7 billion total revenues for 3Q14, up 16.4%, from $7.47 billion recorded in 3Q13. By geographic breakdown, HAL’s revenues increased the most in North America and Middle East/Asia. By division, growth was visible mostly in the completion and production category.

Revenues quarterly

Net Income and margin

Quarterly income higher

Net income for 3Q14 jumped 70.4%, to $1.20 billion, compared to $706 million a year ago. Net income margin improved to 13.8% in 3Q14, from 9.4% in 3Q13.

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Halliburton’s (HAL) net income improved primarily due to better performance in its North America and Middle East/Asia locations. In addition, 3Q14’s profit was boosted by a $195 million addition from loss contingency reduction and insurance recovery gains. Read the following sections of this series to learn why.

Earnings per diluted share (or EPS) were $1.41 in 3Q14 versus $0.79 recorded in the corresponding quarter last year.

Key ETFs

Halliburton (HAL) is a component of the VanEck Vectors Oil Services ETF (OIH) and Energy Select Sector SPDR (XLE). Other companies in this industry that are components of OIH include Schlumberger (SLB) and Weatherford International Plc. (WFT).


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