Halliburton Ekes Past Forecasts, But Drops On Earnings

Michael Teague |

Halliburton Company (HAL) , one of the world’s biggest and perhaps most infamous oilfield services providers, reported earnings before the opening bell on Monday that showed the company beating on both the top and bottom lines during the second quarter of 2013.

Halliburton reported net income for the second quarter of $679 million, of $0.73 per share on revenue of $7.32 billion, a quarterly record, against the prior year period during which the company $737 million, or $0.79 per share on revenue of $7.23 billion. The company beat an average of analyst expectations on earnings of $0.72 per share, and $7.25 billion in revenue.

The company did not give guidance for the third quarter, but estimates put earnings-per-share at $0.84, while revenue is expected to come in at $7.57 billion. For the full year of 2013, EPS is expected at $3.17 per share on revenue of $29.6 billion.



Halliburton’s second-quarter performance was most affected by an 8 percent decline in revenue in North America, but this was offset by a significant increase in overseas operations. Company president and CEO David Lesar noted that the Middle East/Asia market was its fastest-growing, with revenue up 12 percent and operating income up 17 percent. In Europe and Africa, revenue was up 9 percent, and operating income had increased by 33 percent, while gross income from Latin America was down 7 percent, and North American revenue was more or less flat.

The company’s board of directors announced a third quarter dividend of $0.125, and reasserted its desire to pay total annual dividends of at least 15 percent of earnings. The board also authorized an increase the company’s share-repurchasing capability to $5 billion.

Furthermore, the company could see some benefit from the fact that BP Plc. (BP) has challenged part of its settlement deal over the catastrophic oil spill in the Gulf of Mexico, which has allowed the company to delay payments that were part of its own settlement deal over the disaster.

Shares were down nearly 1.5 percent to $45.16 as Halliburton’s results, while positive, fell short of the performance of its larger rival Schlumberger (SLB) , who released an impressive earnings report late last week.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
BP BP p.l.c. 34.16 0.06 0.18 4,741,106 Trade
HAL Halliburton Company 38.99 0.30 0.78 8,868,248 Trade
SLB Schlumberger N.V. 63.32 0.29 0.46 9,096,305 Trade
CITYP Avalon Correctnl Sv Pfd B n/a n/a n/a 0

Comments

Emerging Growth

CMX Gold & Silver Corp.

CMX Gold & Silver Corp is an exploration stage company. The Company is engaged in the acquisition, exploration and development of silver and copper/gold properties in the USA.

Private Markets

iPRO Network, LLC

We provide the platform, tools, and resources to empower individuals and professionals to market desirable goods and services to the public, taking the place of traditional methods of commerce.

CF0005, LLC dba Mesa-Marshall #1-2

MESA Resources, Inc. ("MESA") is sponsoring the development of the oil & gas well completion project "Mesa-Marshall #1-2". MESA, founded in 1992, is engaged in the acquisition, exploration and development…