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Haliburton’s Q2 Results Shine; Street Says “Strong Buy”

Story Highlights

Haliburton’s robust results for the second quarter reflect the company’s operational strength. Yet, shrinking operating income remains a headwind.

Oil field services major Halliburton Company (NYSE: HAL) posted better-than-expected results for the second quarter ended June 30, 2022. The company’s solid results were supported by growth in both revenue and earnings.

Following the upbeat results, shares of the company appreciated by more than 3% to close at $29.74 in yesterday’s extended trade.

Revenue, Earnings Soar

Haliburton reported quarterly revenues of $5.1 billion, a growth of 36.9% from the previous year. Moreover, the figure surpassed the consensus estimate of $4.7 billion. Both revenues from Completion and Production activities, and Drilling and Evaluation activities witnessed year-over-year growth of 42.1% and 30.4%, respectively, which drove the overall growth in revenues of the company.

The company reported earnings per share (EPS) of $0.49 for the quarter, up an impressive 88.5% from the prior year. Further, the figure topped the consensus estimate of an EPS of $0.45.

However, despite the strong topline and bottom-line growth, Haliburton’s operating income witnessed a decline from the previous year. Operating income for the quarter came in at $374 million, down 13.8% from the prior year.

Management’s Commentary

CEO of Haliburton, Jeff Miller said, “Our strong second quarter performance demonstrates that our strategy is working well, and Halliburton’s strategic priorities are driving value. I expect the international markets will experience multiple years of growth, and I am confident that Halliburton is positioned to benefit more from this multi-year upcycle than ever before. We have a leading technology portfolio, the right geographic presence, and new service line opportunities that align perfectly with our strategy to deliver profitable international growth.”

Wall Street’s Take

Consensus among analysts is a Strong Buy based on seven unanimous Buys. The HAL average price target of $41.66 implies upside potential of 41.4% from current levels.

A Solid Smart Score

Haliburton scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 48.3% over the past year.

Key Takeaways

Haliburton’s results in the latest quarter have been strong as the company gains from elevated oil prices amid geopolitical tensions. With both revenue and earnings marked by strong growth from the previous year, the company remains on a strong operational footing.

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