Shares of Halliburton Company (HAL) fell in pre-market trading, even though the company reported earnings that met Street estimates for its second quarter of FY24. The oil service company, which provides drilling equipment for fracking operations, reported earnings of $0.80 per diluted share, up by 17.6% year-over-year, aligning with analysts’ consensus estimate.
HAL’s Q2 Revenue Breakdown
The company generated revenues of $5.8 billion in the second quarter, which was flat year-over-year and missed analysts’ expectations of $5.9 billion.
In the international market, HAL saw its revenues increase by 3% to $3.4 billion. This growth was driven by Europe, Africa, and the Middle East. In the Middle East, the company is experiencing rising demand for its services, such as drilling and well completion, as energy firms seek new oil and gas deposits in the region.
International markets accounted for more than 50% of HAL’s total revenues in the second quarter.
In contrast, the company’s North American market experienced a 3% drop in revenues to $2.5 billion, driven by decreased demand for its oil pumping services.
HAL’s Stock Buyback and Dividends
During the second quarter, HAL repurchased approximately $250 million of its common stock and declared a quarterly dividend of $0.17 per share.
What Is the Target Price of HAL Stock?
Analysts remain bullish about HAL stock, with a Strong Buy consensus rating based on a unanimous 14 Buys. The average HAL price target of $43.54 implies an upside potential of 19.5% from current levels. These analyst ratings are likely to change following HAL’s Q2 results today.
