Halliburton Company | $HAL Stock | Shares Fall After Second-Half Profit Warning


Halliburton Company (NYSE: HAL)


Shares of Halliburton Co. are plunging after the oil services provider revealed its second-quarter financial results.

The company performed better compared with the same period last year, as its top and bottom line results hit $6.15 billion and $511 million, respectively.

However, the results failed to surpass Wall Street estimates, causing the stock to suffer its biggest drop since 2015.

HAL stock was down $3.49, or 7.72% to $41.71 in the early minutes of regular trading.

The drop was further accelerated by the company’s announcement that its second-half earnings will suffer on a slowdown in some parts of the US, including the Permian shale in Texas.

HAL Earnings & Outlook

The company reported net earnings of $511 million, or 58 cents per share, compared with $28 million, or 3 cents per share, in second quarter of last year.

Analysts polled by Thompson Reuters had expected the company to report adjusted earnings of 58 cents per share.

Total sales during the quarter jumped 24.0% to $6.15 billion from $4.96 billion in the prior-year period.

Halliburton CEO Comments

Halliburton President and Chief Executive Officer Jeff Miller said, “We executed on our plan and delivered strong results. We achieved total company revenue of $6.1 billion, representing a 7% increase, while operating income was $789 million, a 27% increase over adjusted operating income for the first quarter of 2018. Our overall strategy is working well and we plan to stay the course. Halliburton is better positioned for the international recovery than it has ever been and we are ready to make the most of it. We have competitive market share in all of the major markets and have consistently executed to manage the changing dynamics.”

Miller continued, “Halliburton is resilient, adaptable and creative and we outperform by keeping our core competencies strong and delivering superior service quality. Our value proposition resonates with our customers and we will continue to maximize their asset value while providing industry leading returns for our shareholders.”

Halliburton Company Profile

Halliburton Company provides various products and services to natural gas and oil companies internationally. Its operates through two segments: the Drilling and Evaluation segments, and the Completion and Production segment.

Under the Completion and Production segment, the company provides production enhancement services, such as sand control and stimulation services; and cementing services, including casing equipment, as well as well casing and bonding.

In addition, this segment also offers completion tools, which provide downhole services and solutions, such as well completion services and products, sand control systems, intelligent well completion, service tools, and liner hanger systems.

It also offers production solutions consisting of downhole tools, coiled tubing, and hydraulic workover units; and process and pipeline services, including maintenance, commissioning, pre-commissioning, and de-commissioning.

Further, it offers oilfield completion and production services and chemicals; and electrical progressive cavity pumps and submersible pumps.

The Drilling and Evaluation segment offers solids control, drilling fluid systems, waste management services, performance additives, specialized testing equipment, completion fluids and drilling services and systems.

Additionally, the segment offers perforating and wireline services, such as open-hole logging, and slickline and cased-hole; and drill bits, including fixed cutter bits, roller cone rock bits, hole enlargement, and coring services.

It also provides integrated production, drilling, and exploration software, as well as related data management and professional services; subsea and testing services, including analysis and acquisition of reservoir information; and consulting, project management, and integrated asset management services.

Halliburton Company was founded in 1919 by Erle P. Halliburton. Its headquarters are located in Houston, Texas. –Reuters