The 10-second takeaway
For the quarter ended June 30 (Q2), Halliburton beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped.
Margins contracted across the board.
Halliburton recorded revenue of $7.23 billion. The 18 analysts polled by S&P Capital IQ expected revenue of $6.92 billion on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $5.94 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.80. The 25 earnings estimates compiled by S&P Capital IQ anticipated $0.75 per share. GAAP EPS of $0.79 for Q2 were 1.3% lower than the prior-year quarter's $0.80 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.6%, 410 basis points worse than the prior-year quarter. Operating margin was 16.6%, 300 basis points worse than the prior-year quarter. Net margin was 10.2%, 230 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $7.11 billion. On the bottom line, the average EPS estimate is $0.77.
Next year's average estimate for revenue is $28.37 billion. The average EPS estimate is $3.24.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Halliburton is outperform, with an average price target of $44.70.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Halliburton. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.