We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Halliburton (HAL) Headed for Strong Q1 Earnings: Know Why
Read MoreHide Full Article
Halliburton Company (HAL - Free Report) is set to release first-quarter results on Apr 19. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 34 cents per share on revenues of $4.2 billion.
Let’s delve into the factors that might have influenced the oilfield service firm’s performance in the March quarter. But it’s worth taking a look at HAL’s previous-quarter performance first.
Highlights of Q4 Earnings & Surprise History
In the last-reported quarter, this Houston, TX-based provider of technical products and services to drillers of oil and gas wells beat the consensus mark on stronger-than-expected profit from its Drilling and Evaluation division. Halliburton had reported net income per share of 36 cents, ahead of the Zacks Consensus Estimate by 2 cents. Revenues of $4.3 billion generated by the firm also came in above the Zacks Consensus Estimate of $4.1 billion.
HAL beat the Zacks Consensus Estimate in three of the last four quarters, which resulted in an earnings surprise of 9%, on average. This is depicted in the graph below:
The Zacks Consensus Estimate for the first-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 79% surge year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 21.2% increase from the year-ago period.
Factors to Consider
Oil and natural gas prices have rallied sharply, revisiting their multi-year highs due to rising demand and geopolitical tensions. Consequently, drilling activity — an important factor for services companies — has been picking up. In the United States, a region on which Halliburton is highly dependent, rig count at the end of the first quarter was 670 compared with 586 three months ago and 417 a year back, in sync with the strength in commodity prices. The number of active units in Canada and the international markets has gained sharply too. The steady growth in rig count is an encouraging indicator of contracting activity.
Considering the improved operating environment, the Zacks Consensus Estimate for the first-quarter operating income of Completion & Production and Drilling & Evaluation is pegged at $349 million and $249 million, respectively, indicating an increase of 38.5% and 45.6% year over year.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Halliburton this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Halliburton has an Earnings ESP of +5.20% and a Zacks Rank #2.
Other Stocks to Consider
Halliburton is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
PBF Energy Inc. (PBF - Free Report) has an Earnings ESP of +30.71% and a Zacks Rank #1. The firm is scheduled to release earnings on Apr 28.
PBF is valued at around $3 billion. The company topped the Zacks Consensus Estimate by an average of 52.4% in the trailing four quarters. PBF has gained around 90.4% in a year.
Valero Energy Corporation (VLO - Free Report) has an Earnings ESP of +4.87% and a Zacks Rank #2. The firm is scheduled to release earnings on Apr 26.
VLO topped the Zacks Consensus Estimate by an average of 75.7% in the trailing four quarters, including a 38% beat in Q4. Valero Energy has rallied some 51% in a year.
Nabors Industries Ltd. (NBR - Free Report) has an Earnings ESP of +23.14% and a Zacks Rank #2. The firm is scheduled to release earnings on Apr 27.
For 2022, NBR has a projected earnings growth rate of 52.5%. Valued at around $1.4 billion, Nabors has surged around 98.3% in a year.
Image: Bigstock
Halliburton (HAL) Headed for Strong Q1 Earnings: Know Why
Halliburton Company (HAL - Free Report) is set to release first-quarter results on Apr 19. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 34 cents per share on revenues of $4.2 billion.
Let’s delve into the factors that might have influenced the oilfield service firm’s performance in the March quarter. But it’s worth taking a look at HAL’s previous-quarter performance first.
Highlights of Q4 Earnings & Surprise History
In the last-reported quarter, this Houston, TX-based provider of technical products and services to drillers of oil and gas wells beat the consensus mark on stronger-than-expected profit from its Drilling and Evaluation division. Halliburton had reported net income per share of 36 cents, ahead of the Zacks Consensus Estimate by 2 cents. Revenues of $4.3 billion generated by the firm also came in above the Zacks Consensus Estimate of $4.1 billion.
HAL beat the Zacks Consensus Estimate in three of the last four quarters, which resulted in an earnings surprise of 9%, on average. This is depicted in the graph below:
Halliburton Company Price and EPS Surprise
Halliburton Company price-eps-surprise | Halliburton Company Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the first-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 79% surge year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 21.2% increase from the year-ago period.
Factors to Consider
Oil and natural gas prices have rallied sharply, revisiting their multi-year highs due to rising demand and geopolitical tensions. Consequently, drilling activity — an important factor for services companies — has been picking up. In the United States, a region on which Halliburton is highly dependent, rig count at the end of the first quarter was 670 compared with 586 three months ago and 417 a year back, in sync with the strength in commodity prices. The number of active units in Canada and the international markets has gained sharply too. The steady growth in rig count is an encouraging indicator of contracting activity.
Considering the improved operating environment, the Zacks Consensus Estimate for the first-quarter operating income of Completion & Production and Drilling & Evaluation is pegged at $349 million and $249 million, respectively, indicating an increase of 38.5% and 45.6% year over year.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Halliburton this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Halliburton has an Earnings ESP of +5.20% and a Zacks Rank #2.
Other Stocks to Consider
Halliburton is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
PBF Energy Inc. (PBF - Free Report) has an Earnings ESP of +30.71% and a Zacks Rank #1. The firm is scheduled to release earnings on Apr 28.
You can see the complete list of today’s Zacks #1 Rank stocks here.
PBF is valued at around $3 billion. The company topped the Zacks Consensus Estimate by an average of 52.4% in the trailing four quarters. PBF has gained around 90.4% in a year.
Valero Energy Corporation (VLO - Free Report) has an Earnings ESP of +4.87% and a Zacks Rank #2. The firm is scheduled to release earnings on Apr 26.
VLO topped the Zacks Consensus Estimate by an average of 75.7% in the trailing four quarters, including a 38% beat in Q4. Valero Energy has rallied some 51% in a year.
Nabors Industries Ltd. (NBR - Free Report) has an Earnings ESP of +23.14% and a Zacks Rank #2. The firm is scheduled to release earnings on Apr 27.
For 2022, NBR has a projected earnings growth rate of 52.5%. Valued at around $1.4 billion, Nabors has surged around 98.3% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.