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What Should You Expect From Halliburton’s Stock?

Houston, Texas, December 7: Attendees of the… [+] listen to a presentation on the Halliburton company. The 23rd World Petroleum Congress will be held in Houston, Texas, on December 7, 2021. The United States hosted the 23rd World Petroleum Congress for the first time in over three decades.

Houston, widely regarded as the energy capital of the world, hosted the conference, where government leaders, ministers of energy, C-suite executives, and expert speakers from all over the world congregated to discuss oil and gas industry developments and challenges.

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The energy company Halliburton (NYSE: HAL), which is engaged in the exploration, development, and production of oil and natural gas, is scheduled to release its fiscal second-quarter results on July 19.

We anticipate that HAL’s stock will rise as a result of its second-quarter revenues and earnings exceeding expectations by a small margin.

Halliburton HAL generated significant returns in 2022, but we do not anticipate another stellar year in 2023 as commodity prices were unexpectedly lower than anticipated. In addition, HAL did not generate any free cash flow in the first quarter of 2023, indicating that the business has tapered off from its 2022 peaks. However, oil prices have increased over the past week due to a weakening U.S. dollar and supply cutbacks by Saudi Arabia and Russia, the world’s two largest oil exporters.

Despite sluggish economic growth, the OPEC report maintained a positive outlook for global oil demand. It increased its growth forecast for 2023 and predicted only a minor slowdown in 2024, with China and India continuing to drive the expansion of fuel consumption.

Halliburton is well-positioned to profit from rising crude oil prices. By the end of 2023, tightening supplies due to geopolitical unpredictability and soaring demand from the reopening of China’s economy could augur well for energy prices. The outlook for international activity remains optimistic, particularly in the Middle East, offshore, and North American markets.

Our projections indicate that HAL is worth $41 per share, approximately 10% more than its current market price. For more information, consult our interactive dashboard analysis on HAL’s Earnings Outlook:

What to Expect in Fiscal Q2

(1) Revenues are anticipated to be marginally above consensus estimates.

Trefis forecasts that HAL’s revenue for the second quarter of 2023 will be approximately $5.9 billion, marginally exceeding the consensus estimate. In the first quarter of 2023, Halliburton’s revenues increased 33% year-over-year to $5.7 billion.

The completion and production segment of HAL’s first-quarter revenues increased 45% year-over-year to $3.4 billion, while the drilling and evaluation segment increased 17% to $2.3 billion. Increased pressure pumping services and completion tool sales globally, as well as enhanced artificial lift services in North America and Kuwait, drove these results.

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In addition, an increase in drilling-related services and global improvements in wireline and testing services contributed to these results. Revenues for HAL are projected to reach $23.8 billion in 2023, an increase of 17% year over year.

The International Energy Agency projects that the global production of liquid fuels will increase by 1.2 million barrels per day in 2023, primarily due to the growth of non-OPEC producers such as the United States, Norway, Canada, Brazil, and Guyana. This development compensates for decreased output in Russia and OPEC.

(2) Earnings per share are also anticipated to narrowly surpass consensus forecasts.

Trefis projects that HAL’s Q2 2023 earnings per share will be 76 cents, 3 cents above the consensus estimate. In the first quarter of 2018, HAL’s net income increased to $651 million, or $0.72 per share, from $263 million, or $0.29 per share, in the first quarter of 2017.

(3) The estimated stock price is greater than the prevailing market price.

According to our HAL’s Valuation, with an estimated EPS of $3.07 and a P/E multiple of 13.3x for the fiscal year 2023, this equates to a price of $41, which is nearly 22% higher than the current market price.

It is useful to compare a subject to its counterparts. HAL rivals demonstrate how Halliburton’s stock compares to its rivals on relevant metrics. Peer Comparisons contain additional comparisons of corporations across industries.

What if you want a portfolio that focuses on long-term growth? Since 2016, this value portfolio has performed significantly better than the market.

HAL Return Compared To Trefis’s Diversified Portfolio




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