Halliburton (HAL) Q4 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

Halliburton Company (NYSE:HAL) is scheduled to report Q4 earnings results on January 21, 2020. The earnings conference call is scheduled for 9:00 AM EST. You can join the webcast here.

The company is expected to report earnings of $0.29/share on revenue of $5.099 billion before markets open for trading. The consensus earnings per share (EPS) of $0.29/share is based on a poll of 27 analysts and represents a decline of -28.7% over the same quarter last year when the company reported earnings of $0.41/share.

The revenue forecast of $5.099 billion based on a poll of 22 analysts implies a year-over-year (YoY) decline of -14.1%. Last year the company reported $5.936 billion in revenue for the quarter.

Expected to report EPS decline of -$0.12/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $5,098.61 $5,936.00 -14.1%
EPS $0.29 $0.41 -28.7%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and met expectations 2 quarters.

What are your expectations from Halliburton for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $0.34 $0.34 0.0% Meet
Q2, 2019 $0.30 $0.35 16.7% Beat
Q1, 2019 $0.22 $0.23 3.6% Beat
Q4, 2018 $0.37 $0.41 10.8% Beat
Q3, 2018 $0.49 $0.50 2.0% Beat
Q2, 2018 $0.58 $0.58 0.0% Meet
Q1, 2018 $0.40 $0.41 2.5% Beat
Q4, 2017 $0.46 $0.53 14.4% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending September 30, 2019, the stock price reacted by increasing by 8.0%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-21 $18.43 $19.90 8.0% Increase
2019-07-22 $21.75 $23.84 9.6% Increase
2019-04-22 $31.13 $31.15 0.1% Increase
2019-01-22 $32.25 $31.05 -3.7% Decline

Fundamentals And Technical Analysis

Halliburton is currently trading at $23.96/share, up 0.6% for the day. The company is trading at approximately 73.2% of its 52-week high of $32.71/share. The company’s stock price is up 20.4% since the last earnings report and up 0.9% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 55.62 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:HAL Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 17.6x and a forward P/E multiple of 19.9x.

Halliburton’s current share price also implies a price-to-book (P/B) multiple of 2.2x. The following table summarizes some other key fundamental ratios:

Data as of January 20, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $23.96
P/E Ratio 17.6x
P/E Ratio (Fwd) 19.9x
PEG Ratio 4.7
Total Debt to Capital (%) 35.2%
Levered Free Cash Flow $389 million
Enterprise Value / EBITDA 8.3x

Source: Finbox

Company Profile: Halliburton Company

Halliburton Company is a large-cap stock with a market capitalization of $21.032 billion and a total enterprise value of $30.921 billion. The company operates in the Energy sector and the Energy Equipment & Services industry.

Halliburton Company provides a range of services and products to oil and natural gas companies worldwide. The company’s Completion and Production segment offers production enhancement services, including stimulation and sand control services; and cementing services, such as bonding the well, well casing, and casing equipment. It also provides completion tools that offer downhole solutions and services, including well completion products and services, intelligent well completions, liner hanger and sand control systems, and service tools; production solutions comprising coiled tubing, hydraulic workover units, and downhole tools; and pipeline and process services, such as pre-commissioning, commissioning, maintenance, and decommissioning. In addition, this segment offers oilfield completion, production, and downstream water and process treatment chemicals and services; and electrical submersible pumps and progressive cavity pumps, as well as artificial lift services. The company’s Drilling and Evaluation segment provides drilling fluid systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste management services; and drilling systems and services. It also offers wireline and perforating services, including open-hole logging, and cased-hole and slickline; and drill bits and services comprising roller cone rock bits, fixed cutter bits, hole enlargement, and related downhole tools and services, as well as coring equipment and services. In addition, this segment provides integrated exploration, drilling, and production software, as well as related professional and data management services; testing and subsea services, such as acquisition and analysis of reservoir information and optimization solutions; and project management, consulting, integrated asset management, and well control and prevention services.

Halliburton Company was founded in 1919 and is headquartered in Houston, Texas.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

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