uploads///Adjusted versus Estimates

What Do Analysts Expect of Halliburton’s 4Q16 Earnings?

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Nov. 20 2020, Updated 4:32 p.m. ET

Halliburton’s 4Q16 earnings estimates

Wall Street analysts expect Halliburton’s (HAL) 4Q16 adjusted earnings per share (or EPS) to reach $0.013. HAL’s 4Q16 EPS would represent a 29% improvement over its 3Q16 adjusted earnings of $0.010 per share.

The rig count recovery in North America, Halliburton’s focus on its surface efficiency model, its structural cost reduction, and higher completion activities are expected to benefit HAL’s 4Q16 earnings. However, weakness in some of HAL’s international operations and weak offshore drilling activity can add to the company’s challenges. HAL is expected to hold its 4Q16 earnings conference call on January 23, 2017.

Since 1Q15, Halliburton’s earnings have been declining as a result of the falling rig count. From 3Q15 to 3Q16, its adjusted earnings turned negative, reflecting the difficult energy market environment.

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Halliburton’s earnings versus estimates

In 3Q16, Halliburton’s (HAL) adjusted EPS exceeded analysts’ consensus EPS. As noted in the chart above, Halliburton’s adjusted EPS exceeded estimates in several previous quarters. On average, its adjusted EPS exceeded consensus EPS by ~11% in the past 13 quarters.

Halliburton’s recent settlement of a class action lawsuit can also affect its earnings. You can read more in Market Realist’s Halliburton to Settle Class Action Lawsuit: Is There More?

Analysts’ estimates for HAL’s peers

Analysts expect National Oilwell Varco’s (NOV) 4Q16 adjusted earnings to improve to -$0.29 per share compared to its adjusted 3Q16 adjusted earnings of -$0.34. Analysts expect Weatherford International’s (WFT) 4Q16 adjusted earnings to improve to -$0.31 per share compared to its adjusted 3Q16 adjusted earnings of -$0.39.

Flotek Industries’s (FTK) 4Q16 adjusted earnings are expected to improve to -$0.04 per share compared to its adjusted 3Q16 adjusted earnings of -$0.05.

Halliburton (HAL) comprises 0.07% of the iShares Core Growth Allocation ETF (AOR). AOR has 61% exposure to equities and 39% exposure to fixed income securities.

Next, we’ll discuss how the US rig count affects Halliburton’s North America operations.

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