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Source: Getty

Halliburton Beats Q3 Earnings Estimates, Shares Fall on Revenue Miss

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On Monday, Oct. 19, Halliburton stock fell 1.2 percent in the pre-market session after the company released its third-quarter earnings results. The earnings beat analysts’ average estimate, while the sales missed amid the coronavirus pandemic and lower demand for oil.

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When did Halliburton report its earnings?

Halliburton reported its third-quarter results on Oct. 19 before the market opened. The energy company will hold its earnings conference call at 9:00 a.m. ET. Investors and financial analysts can access a live webcast and recording of the event on the company’s investor relations website.

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Highlights from Halliburton’s earnings report

In the third quarter, Halliburton reported an adjusted net income of $100 million or $0.11 per share. The adjusted EPS beat analysts’ average estimate of $0.08. Halliburton generated sales of $2.98 billion in the third quarter, which was 46.4 percent lower than the third quarter of 2019. The company missed analysts’ average sales estimate of $3.09 billion.

The revenue from Halliburton’s Completion and Production segment fell by 55.1 percent YoY (year-over-year) to $1.57 billion, which was lower than analysts’ consensus estimate of $1.69 billion. In the third quarter, the Completion and Production segment represented 52.9 percent of the company’s overall revenue. In the third quarter of 2019, the segment accounted for 63.2 percent of Halliburton’s total revenue.

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The revenue from Halliburton’s Drilling and Evaluation segment fell by 31.5 percent YoY to $1.40 billion, which was lower than analysts’ consensus estimate of $1.42 billion. In the third quarter, the Drilling and Evaluation segment represented 47.1 percent of the company’s overall revenue. The segment accounted for 36.8 percent of Halliburton’s total revenue in the third quarter of 2019.

What is Halliburton’s stock price today?

Halliburton stock was down about 1.2 percent at $12.10 in the pre-market trading session on Oct. 19 as of 7:06 a.m. ET. The stock fell 6.3 percent on Oct. 16 and closed at $12.25 with a market capitalization of $10.8 billion.

Halliburton stock has fallen by 3.8 percent in the last five days and 37.5 percent in the last year. The stock is trading 51.9 percent below its 52-week high of $25.47 and 188.2 percent above its 52-week low of $4.25.

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Halliburton Earnings Call
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What is Halliburton’s dividend yield?

As of Oct. 16, Halliburton’s dividend yield was 1.47 percent. Currently, the company pays an annual dividend of $0.18 per share. In the first nine months of 2020, Halliburton distributed $238 million as a cash dividend to shareholders compared to $472 million in the same period last year.

Halliburton’s stock forecast

According to data compiled by TipRanks, five out of the 17 analysts covering Halliburton have a buy or equivalent rating on Halliburton. About 11 analysts have a hold rating, while one analyst has a sell rating on Halliburton. Currently, analysts' average stock price forecast for Halliburton is $15.28, which suggests a 24.7 percent upside. The highest target price of $22.50 indicates an 83.7 percent upside, while the lowest target price of $11.50 indicates a 6.1 percent downside.

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