Quarterly revenues versus consensus
Halliburton’s (HAL) 2Q15 revenues beat estimates. In this post, we’ll discuss Halliburton’s 2Q15 revenues and earnings versus analysts’ consensus estimates in depth. The company’s 2Q15 adjusted revenue, at $5.92 billion, was 2.4% higher than the $5.78 billion consensus sell-side analyst revenue estimate.
On average, adjusted revenues have beaten consensus revenues by ~1% in the past nine quarters. Between 2Q13 and 2Q15, Halliburton’s adjusted revenues have decreased 19%. They decreased ~26% from 2Q14 to 2Q15.
Quarterly earnings per share or EPS, versus consensus
Halliburton’s 2Q15 adjusted EPS were $0.44—52% higher than the consensus sell-side analyst EPS estimate of $0.29. The company’s adjusted earnings exclude $643 million (pre-tax) in impairment charges and Baker Hughes (BHI) acquisition–related charges that were recorded in 2Q15. Halliburton’s earnings from its international operations held up much better than its North American operations, which led to better-than-expected 2Q15 earnings.
Between 2Q13 and 2Q15, Halliburton’s adjusted EPS have decreased 40%. They decreased ~52% from 2Q14 to 2Q15. The fall in crude oil prices has triggered lower capex spending by energy upstream companies, which should affect oilfield service companies like Halliburton negatively.
As we noted in the graph above, HAL’s adjusted EPS exceeded estimates in recent quarters. On average, the company’s adjusted EPS have beat consensus EPS by ~8% in the past nine quarters.
Share price up on earnings
Halliburton (HAL) released its financial information for 2Q15 on July 20, 2015. Its stock reacted positively immediately following the earnings release. On July 21, it increased 2.8% to $41.86 from the previous day’s close. Since the beginning of this year, its share price has risen 6%.
Baker Hughes (BHI), which is expected to be acquired by Halliburton in late 2015, has rallied 8% year-to-date. Cameron International’s (CAM) share price has gone down marginally, by 1% since the beginning of the year. RPC’s (RES) share price declined 8% while Core Laboratories’s (CLB) share has fallen 13% since January 1. Together, HAL, RES, BHI, and CLB make up 24.3% of the VanEck Vectors Oil Services ETF (OIH). OIH has fallen 11% during this period.