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Haliburton Exceeds Q1 Expectations

Oilfield services provider Halliburton Company (NYSE: HAL) recently reported stronger-than-expected results for the first quarter ended March 31, 2022.

However, shares of the company remained almost static and closed at $41.45 in Tuesday’s extended trading session.

Revenue & Earnings

Haliburton reported quarterly revenues of $4.3 billion, up 24.1% from the same quarter last year. Further, the figure topped the consensus estimate of $4.21 billion.

Revenue of the Completion and Production segment rose 26% year-over-year to $2.4 billion and the Drilling and Evaluation segment’s revenue increased 22% year-over-year to $1.9 billion.

Earnings per share (EPS) for the quarter stood at $0.35, up 84.2% from the year-ago quarter. Further, the figure surpassed the consensus estimate of $0.34 per share by a whisker.

Management Commentary

The CEO of Haliburton, Jeff Miller, said, “I am pleased with Halliburton’s first-quarter results. Our performance demonstrated the resilience of our unique strategy in action and the importance of our competitive positioning both in North America and international markets.

“We see significant tightness across the entire oil and gas value chain in North America. Supportive commodity prices and strengthening customer demand against an almost sold-out equipment market are expected to drive expansion in Completion and Production division margins.”

Stock Rating

Consensus among analysts is a Strong Buy based on 12 Buys and two Holds. HAL’s average price target of $39.31 implies downside potential of 4.8% from current levels. Shares have gained 108.5% over the past year.

Positive Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on HAL, as 12.9% of portfolios tracked by TipRanks increased their exposure to HAL stock over the past 30 days.

Conclusion

Halliburton’s strong results give it operational flexibility. Further, economic tailwinds in the form of high oil prices also bode well for the company’s profitability in the near future.

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