The 10-second takeaway
For the quarter ended March 31 (Q1), Halliburton beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Halliburton booked revenue of $6.97 billion. The 24 analysts polled by S&P Capital IQ predicted net sales of $6.88 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.67. The 33 earnings estimates compiled by S&P Capital IQ predicted $0.57 per share. Non-GAAP EPS of $0.67 for Q1 were 25% lower than the prior-year quarter's $0.89 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS were -$0.02 for Q1 compared to $0.68 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was -1.4%, much worse than the prior-year quarter. Operating margin was -1.4%, much worse than the prior-year quarter. Net margin was -0.3%, 940 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $7.26 billion. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $29.62 billion. The average EPS estimate is $3.10.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Halliburton is outperform, with an average price target of $49.50.
Is Halliburton the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add Halliburton to My Watchlist.
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. The Motley Fool recommends 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.