Have you been eager to see how Halliburton Company (HAL - Free Report) – the world’s No. 2 oilfield-services company – performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this Houston, TX-based company’s earnings release this morning:
About Halliburton: Halliburton is one of the largest oilfield service providers in the world, offering a variety of equipment, maintenance, and engineering and construction services to the energy, industrial, and government sectors. The company operates under two main segments: Completion and Production, and Drilling and Evaluation.
Zacks Rank & Surprise History: Currently, Halliburton has a Zacks Rank #3 (Hold) but that could change following its third quarter 2016 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Coming to earnings surprise history, the company has an excellent track record: its beaten estimates in each of the last four quarters at an average rate of 36.33%.
Estimate Revision Trend: Investors should note that the earnings estimate revisions for Halliburton depicted pessimism prior to the earnings release. The Zacks Consensus Estimate worsened slightly over the last 7 days.
We have highlighted some of the key details from the just-released announcement below:
A Surprise Profit: Net income per share came in at 1 cent, contrary to the Zacks Consensus Estimate for a loss of 7 cents. Continued and effective cost management led to the outperformance.
Revenue Came in Lower than Expected: Halliburton posted revenues of $3,833 million, missing the Zacks Consensus Estimate of $3,897.5 million. Moreover, revenues deteriorated 31% on a year-over-year basis.
Key Stats: Operating income from the Completion & Production segment was $24 million, falling sharply from the year-ago profit of $163 million. However, the division turned around from previous quarter’s loss of $32 million.
Halliburton’s Drilling & Evaluation unit profit also dropped big time – from $401 million in the third quarter of 2015 to $151 million this year. But again, the number was almost flat with the $154 million earned in the Jun quarter.
Check back later for our full write up on this Halliburton earnings report later!
Confidential from Zacks
Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>