Halliburton Company (NYSE: HAL) reported in-line earnings for the third quarter of 2019. Meanwhile, revenues declined and missed the Street view. The company’s stock dropped modestly during Monday’s pre-market session, after the announcement.
Total revenues declined 10% year-over-year to $5.6 billion and missed the estimates, mainly hurt by the continuing weakness in North American operations. Net income attributable to the company was $295 million, or $0.34 per share, compared to $435 million, or $0.50 per share, in the year-ago period.
Adjusted net income totaled $303 million or $0.35 per share. Earnings matched analysts’ consensus estimate. The results were negatively impacted by the muted top-line performance and lower margins.
Completion and Production revenues slipped 16% annually to $3.51 billion, while Drilling and Evaluation revenue rose 2% to $2.04 billion.
Region-wise, revenues in North America dropped 21% annually to $2.95 billion, while Latin American revenues rose 16% to $608 million. At $832 million, revenues at Europe, Africa and CIS ware up 10% year-over-year. Middle East/Asia revenue was broadly flat at $1.16 billion.
CEO Jeff Miller said, “International revenue, which was flat sequentially, was up 10% year to date and we remain confident that we will achieve high single-digit international growth for all of 2019. International growth continues across multiple regions, benefitting both our Drilling and Evaluation and Completion and Production divisions.”
Going forward, the management expects to leverage the international recovery and improvement in the North American Market and generate strong free cash flow and produce strong returns.
Shares of Halliburton slipped to a ten-year low last week and traded below the $20-mark, continuing the downturn that started more than a year ago. The stock closed the last trading session lower.