Halliburton soft earnings estimates delayed, Goldman Sachs analyst seeks clarity on 2025 activities.
Halliburton Company (NYSE: HAL ) shares. Low trading on Wednesday.
Goldman Sachs Analyst Neil Mehta reiterated his buy rating on the stock; Price forecast at $36.
Halliburton reported fourth-quarter revenue fell 2.3 percent year-over-year to $5.61 billion. The $5.63 billion deal was lost. Completion and production revenue fell 4.2 percent to $3.2 billion, with operating income of $629 million.
Analysts attributed the softer revenue to completion and production declines, partially offset by drilling and appraisals. North American revenue was 7% below analyst estimates, while global revenue was 3% higher.
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Mehta wrote that free cash flow for the quarter was $1.104 billion, beating the analyst estimate of $930 million and the $1.045 billion consensus. This beat was attributed to better working capital and lower capital expenditures ($426 million vs. analyst estimates of $454 million).
During the quarter, the company repurchased approximately $309 million of common stock, compared to analyst estimates of $310 million.
The analyst is uncertain about 2025 revenue growth by region and seeks clarity on expected activity in global markets, particularly in the Middle East.
Mehta has questions about how investors should view long-term dividend expansion, especially flat activity.
Additionally, the analyst is ambivalent about Halliburton’s future involvement in the power space, including its partnership with Voltagrid. Finally, there is uncertainty about how capital will be returned in 2025, the analyst highlights.
Price Action: Shares of HAL were down 1.51% to $29.09 at the close on Wednesday.
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Morgan Stanley |
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