Halliburton stock is expected to trade higher as the energy company is set to report its fiscal second-quarter results on July 19. Analysts anticipate that HAL’s revenues and earnings will surpass market expectations, driven by a favorable environment for oil prices and high demand for the company’s services and equipment. The company experienced record margins in both its divisions in the first quarter of 2024 and is anticipated to continue this momentum in upcoming quarters. While HAL’s stock is currently down year-to-date, it is expected to see strong growth potential in the future, especially in its international business.
For fiscal year 2024, Halliburton projects flat revenues and margins for its North American business, despite lower activity levels. In contrast, the international division is expected to see margin expansion and a low double-digit percentage increase in revenue for the year. HAL stock has seen significant gains over the past few years, outperforming the S&P 500 in some years but underperforming in others. Consistently beating the S&P 500 has been challenging for individual stocks, and HAL’s performance in the coming months remains uncertain amidst high oil prices and elevated interest rates.
Analysts estimate HAL’s Q2 2024 revenues to be around $6.3 billion, ahead of consensus estimates. International revenue saw strong growth, while North American revenue declined due to lower pressure pumping services and reduced wireline activity. Completion & Production revenues fell slightly year-over-year, while Drilling & Evaluation revenues saw a 7% increase. HAL’s EPS is also expected to come in ahead of consensus estimates, reflecting sustained growth in international markets. The company’s valuation suggests a stock price of $42 per share, which is 17% higher than the current market price.
It will be crucial to monitor how HAL’s performance compares to its peers in the industry. HAL Peers provides a comparison of Halliburton’s stock against other companies in the sector on important metrics. As investors navigate the current macroeconomic environment, characterized by uncertainty and volatility, the future performance of HAL and its ability to outperform the market remains to be seen. Analysts recommend keeping an eye on HAL’s earnings report and performance in the coming quarters to gauge its growth potential and stock trajectory.
