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What Do Analysts Expect from Halliburton’s 2Q16 Earnings?

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Halliburton’s 2Q16 earnings

In 2Q16, analysts expect an adjusted loss per share of $0.18 for Halliburton (HAL). This means Wall Street analysts expect HAL’s adjusted earnings to turn negative in the coming quarter from the 1Q16 adjusted earnings of $0.07 per share. Rig idling or stacking by US upstream companies, persistent pricing pressure, and lower drilling activity in some of HAL’s international operations are factors that will affect HAL’s 2Q16 earnings. HAL is expected to hold its 2Q16 earnings conference call on July 20.

The falling rig count had sent Halliburton’s 1Q15 adjusted earnings per share (or EPS) crashing 59% compared to the previous quarter. From 1Q15 through 1Q16, adjusted earnings dipped 86%.

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Halliburton’s earnings versus estimates

In 1Q16, Halliburton’s adjusted EPS exceeded analysts’ consensus EPS. As noted in the graph above, Halliburton’s adjusted EPS exceeded estimates in many quarters in the past. On average, adjusted EPS exceeded consensus EPS by ~9% in the past 12 quarters.

Analysts expect FMC Technologies’ (FTI) 2Q16 adjusted earnings to improve to $0.30 per share compared to its 1Q16 adjusted earnings of $0.22. FTI’s market capitalization stands at $5.9 billion compared to HAL’s $37.6 billion. HAL makes up 0.06% of the iShares Core Growth Allocation ETF (AOR). AOR has 60% exposure to equity and 39% exposure to fixed income securities.

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