Halliburton Beats Estimates Yet Again

Seth Jayson, The Motley Fool
Updated

Halliburton (NYS: HAL) reported earnings on Jan. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Halliburton beat expectations on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue improved significantly, and earnings per share expanded significantly.

Margins improved across the board.

Revenue details
Halliburton reported revenue of $7.1 billion. The 21 analysts polled by S&P Capital IQ predicted net sales of $6.8 billion. Sales were 37% higher than the prior-year quarter's $5.2 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $1.00. The 31 earnings estimates compiled by S&P Capital IQ predicted $0.99 per share on the same basis. GAAP EPS of $0.98 for Q4 were 49% higher than the prior-year quarter's $0.66 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 20.2%, 20 basis points better than the prior-year quarter. Operating margin was 20.2%, 120 basis points better than the prior-year quarter. Net margin was 12.8%, 110 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $6.7 billion. On the bottom line, the average EPS estimate is $0.97.

Next year's average estimate for revenue is $28.4 billion.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, Halliburton's average price target is $54.79.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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