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Oil and gas servicing giant Halliburton reported in line third second quarter earnings Monday before the market but with lower revenue. $HAL followed earnings from Schlumberger. $HAL said momentum building internationally and activity improvement should continue, the stock popped 8% squeezing short interest.

Halliburton Oilfield

The Baker Hughes oil rig count has hit a cycle high benefiting oil service companies but has been steadily falling over the last quarter with the decreased activity in North America. Halliburton serves the upstream oil and gas industry throughout the lifecycle extraction to completion of the energy source.

Halliburton Company NYSE: HAL Reported Before Open Monday

$0.35 Matched $0.35 EPS Forecast But $5.60 Bil Missed $5.87 Billion Forecast in Revenue

Earnings

Halliburton reported adjusted third quarter net income of $303 million or $0.35 per share meeting analysts’ consensus estimate. The results were negatively impacted by muted top-line performance and lower margins. Total revenues declined 10% year-over-year to $5.55 billion and missed estimates by $270 million, mainly the result of continuing weakness in North American operations.

Read: Schlumberger International Oil and Gas Activity Offset North America Pricing

Read: U.S. Took Down Another 5 Oil Rigs From Service, 8 From The Permian

Halliburton Company NYSE: HAL

Market Reaction > Market Close $19.61 USD +1.18 (+6.40%)

Despite inline earnings and missed revenue $HAL shares popped over 8% and closed up 6.4%, why? Short interest was at its highest level in almost four years

Highlights

  • Completion and Production revenues slipped 16% annually to $3.51 billion,
  • Drilling and Evaluation revenue rose 2% to $2.04 billion.
  • Revenues in North America dropped 21% annually to $2.95 billion,
  • Latin American revenues rose 16% to $608 million.
  • Europe Revenues rose  $832 millio
  • Africa and CIS ware up 10% year-over-year.
  • Middle East/Asia revenue was broadly flat at $1.16 billion.

CEO Jeff Miller said, “International revenue, which was flat sequentially, was up 10% year to date and we remain confident that we will achieve high single-digit international growth for all of 2019. International growth continues across multiple regions, benefitting both our Drilling and Evaluation and Completion and Production divisions.”

Outlook

Going forward, the management expects to leverage the international recovery and improvement in the North American Market and generate strong free cash flow and produce strong returns. Also see: Halliburton Q2 2019 Earnings Call Transcript

 

Source: HAL, Alphastreet

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