Halliburton’s share price reaction to its fiscal 4Q15 earnings release
Halliburton Company (HAL) released its financial information for fiscal 4Q15 on January 25, 2015. Its stock reacted negatively immediately following the earnings release, decreasing by 3.9% to $29.28 on the day compared to the previous day’s close. Since the beginning of 2016, the company’s share price has gone down by 15%.
Schlumberger (SLB), the largest OFS (oilfield equipment and services) company in the world by market capitalization, released its financial information for fiscal 4Q15 on January 21, 2016, but Schlumberger’s share price increased by 2.5% on the day of its latest earnings release. Together, HAL and SLB make up 34.2% of the VanEck Vectors Oil Services ETF (OIH).
HAL’s share price returns vis-à-vis industry
Over the past fiscal year, Halliburton’s stock has returned -28% (net of dividends) as of January 25. Over the same period, HAL has outperformed the VanEck Vectors Oil Services ETF (OIH), which has returned -35%. The Energy Select Sector SPDR ETF (XLE), which is one of the broader energy industry ETFs, has performed on par with HAL, yielding a -29% return. HAL has also hugely outperformed the US rig count, which returned -61% in the past year.
On the other hand, HAL has underperformed the SPDR S&P 500 ETF (SPY), which has returned -2.5% during the same period. HAL makes up 0.16% of SPY. By comparison, HAL’s peer Ensco (ESV) also underperformed HAL, producing an approximate -70% return since January 25, 2015.
For an in-depth overview of Halliburton’s business, check out Market Realist’s Halliburton: An In-Depth Overview of the Oilfield Industry Giant. In the next and final part of this series, we’ll discuss Wall Street analyst targets for Halliburton after the company’s fiscal 4Q15 earnings release.