Categories Analysis, Earnings, Technology

Earnings Preview: Slide in crude oil prices could hurt Halliburton in Q4

Oilfield service provider Halliburton Co (HAL) is expected to announce its fourth-quarter 2018 results before the opening bell on Jan. 22.

For the three-month period that ended on December 2018, the Street expects earnings of $0.37 per share on revenue of about $5.9 billion.

With sector leader Schlumberger (SLB) not exuding confidence, Halliburton is also not expected to beat earnings consensus for the quarter.

Oil service providers usually see a surge in their sales and profitability after strong commodity prices, as they typically point to robust upstream activities.

But West Texas Intermediate (WTI) crude oil prices crashed in the past quarter. This could lead to stakeholders treading a more careful line regarding further investment.

A general industry slowdown would hurt the overall demand for services and equipment — something that is not looking good for Halliburton.


In the previously reported quarter, robust international activity beat the slowdown in North American drilling fluids demand and pricing pressures leading to an earnings beat of 2%.

Halliburton third quarter 2018 Earnings Infographic

Net income rose to $435 million or $0.50 per share in the September quarter from $365 million or $0.42 per share.


Despite reservations on slowing demand for Halliburton services, the fourth quarter saw US rig count rise by 29 to 1,083 from 1,054 — despite the oil price crash.

Halliburton is expected to gain favorably on this.

However, pipeline takeaway capacity constraints in the Permian Basin might still come to bite Halliburton’s prospects.

The company has already warned about a slowdown in the Permian Basin affecting fourth-quarter earnings. This could also push Halliburton’s adjusted operating income estimate for completion and production close to $460 million, much lower than third quarter’s $613 million. This is troublesome, since it is the lion’s share of the company’s total operating income.

Also Read:  Microsoft’s latest update gives more power to users on app selection


Get access to timely and accurate verbatim transcripts that are published within hours of the event

Most Popular

CRWD Earnings: All you need to know about CrowdStrike Q1 2021 earnings results

CrowdStrike Holdings (NASDAQ: CRWD) today announced its first quarter financial results for the period ended April 30, 2020. Net loss for the first quarter was $19.2 million, or ($0.09) per

Zoom Video Communications (ZM) Q1 profit beats estimates, guides Q2 above view

Zoom Video Communications Inc. (NASDAQ: ZM) reported its financial results for the quarter ended April 30, 2020, on Tuesday after the market closes. The results exceeded analysts' expectations. The company

A visual representation of DICK’S Sporting Goods (DKS) Q1 2020 earnings results

DICK'S Sporting Goods Inc. (NYSE: DKS) slipped to a loss in the first quarter of 2020 from a profit last year, due to the impacts from temporary store closures, expenses,