Halliburton Company Reports Financial Results for Third Quarter 2024
Intellectia.AI
Halliburton Company Reports Financial Results for Third Quarter 2024
Halliburton Company (NYSE: HAL) has announced its financial results for the third quarter of 2024. Below we present a detailed overview of the company's financial performance, revenue breakdown across segments, and additional operational highlights.
Key Financial Metrics
| Metric | Q3 2024 | Q2 2024 | YoY % Change | Consensus Estimate | Variance to Estimate |
|---|---|---|---|---|---|
| Revenue | $5.7 billion | $5.8 billion | -1.72% | $5.83 billion | -$0.13 billion |
| Net Income per Share (EPS) | $0.65 | $0.80 | -18.75% | $0.75 | -$0.10 |
| Adjusted EPS | $0.73 | N/A | N/A | $0.75 | -$0.02 |
Interpretation: Halliburton reported a minor decline in revenue and net income per share compared to the previous quarter, missing Wall Street consensus estimates. An adjusted EPS of $0.73 reflects minimal impact despite challenges, indicating operational resilience.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue | QoQ % Change |
|---|---|---|
| Completion and Production | $3.3 billion | -3% |
| Drilling and Evaluation | $2.4 billion | Flat |
Interpretation: The Completion and Production segment experienced a sequential decrease in revenue due to reduced services in US land and other regions. Drilling and Evaluation maintained stable performance, driven by growth in Latin America and certain international markets.
Operational Highlights
- Halliburton repurchased approximately $200 million of its common stock.
- Paid dividends of $0.17 per share.
- Spent $28 million on SAP S4 migration.
- Recognized a pre-tax charge of $116 million related to severance, asset impairment, cybersecurity incidents, and gains on equity investments.
- Introduced innovative technologies and secured a significant contract with Petrobras for full-range services in Brazil.
Executive Commentary
Jeff Miller, Chairman, President, and CEO, emphasized strong international business prospects. He noted impacts from a cybersecurity incident and Gulf of Mexico storms on financial results but reiterated expectations for improved cash flow and shareholder returns in Q4. Miller underscored strategic advances in North America and anticipated continued value enhancement through platform differentiation and technology integration.
Shareholder Returns
- Halliburton announced dividends of $0.17 per share.
- Continued share repurchase efforts.
Forward Guidance
The company did not provide specific forward guidance but expressed confidence in continued growth opportunities, highlighting capital allocation towards high-return prospects and strengthening operations.
Stock Price Movement
Following the earnings release, Halliburton shares experienced a positive market reaction, with the stock price increasing by approximately 6.91%.
In summary, Halliburton navigated Q3 2024 with slight declines in key metrics but maintained a robust outlook through strategic initiatives and technological advancements.
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