Halliburton Company (HAL Quick QuoteHAL - Free Report) is set to release second-quarter results on Jul 19. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 45 cents per share on revenues of $4.7 billion.

Let’s delve into the factors that might have influenced the oilfield service firm’s performance in the June quarter. But it’s worth taking a look at HAL’s previous-quarter performance first.

Highlights of Q1 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 met the consensus mark on stronger-than-expected profit from its Drilling and Evaluation division. Halliburton had reported adjusted net income per share of 35 cents, in line with the Zacks Consensus Estimate. Revenues of $4.3 billion came ahead of the Zacks Consensus Estimate by 2.4%.

HAL beat the Zacks Consensus Estimate in two of the last four quarters, which resulted in an earnings surprise of 6%, on average. This is depicted in the graph below:

The Zacks Consensus Estimate for the second-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 73.1% improvement year over year. The Zacks Consensus Estimate for revenues suggests a 27.1% 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 second quarter was 753 compared with 670 three months ago and 470 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 second-quarter operating income of Completion & Production and Drilling & Evaluation is pegged at $446 million and $274 million, respectively, indicating an increase of 40.7% and 56.6% 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 +2.73% 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:

Range Resources Corporation (RRC Quick QuoteRRC - Free Report) has an Earnings ESP of +15.92% and a Zacks Rank #1. The firm is scheduled to release earnings on Jul 25.

You can see the complete list of today’s Zacks #1 Rank stocks here.

RRC is valued at around $7.1 billion. The Zacks Consensus Estimate for the company’s 2022 earnings has been revised 3.2% upward over the past 60 days. Range Resources has surged around 66.3% in a year.

Schlumberger Limited (SLB Quick QuoteSLB - Free Report) has an Earnings ESP of +2.10% and a Zacks Rank #2. The firm is scheduled to release earnings on Jul 22.

SLB topped the Zacks Consensus Estimate by an average of 6.7% in the trailing four quarters, including a 6.3% beat in Q1. Schlumberger has gained some 10.8% in a year.

Liberty Energy Inc. (LBRT Quick QuoteLBRT - Free Report) has an Earnings ESP of +20.83% and a Zacks Rank #2. The firm is scheduled to release earnings on Jul 25.

For 2022, LBRT has a projected earnings growth rate of 163.7%. Valued at around $2.3 billion, Liberty Energy has lost around 7.6% in a year.

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