Halliburton Q4 revenue, profit beat estimates driven by international growth

Overview

• Energy services firm Halliburton's Q4 revenue rose, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company repurchased $250 mln of its common stock in Q4

Outlook

• Halliburton expects North America to respond positively to improved macro fundamentals

• Company confident in ability to deliver leading returns and capitalize on growth opportunities

• Halliburton sees strong international business with aligned growth engines

Result Drivers

• COMPLETION AND PRODUCTION - Segment revenue was flat but operating income increased due to higher completion tool sales and improved cementing activity

• DRILLING AND EVALUATION - Segment revenue was flat with a slight increase in operating income, driven by higher wireline activity and software sales

• INTERNATIONAL GROWTH - International revenue increased by 7% sequentially, driven by higher completion tool sales and improved well construction activity

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy"

• Wall Street's median 12-month price target for Halliburton Co is $32.50, about 1.4% below its January 20 closing price of $32.06

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw6qMM9a

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