Why Is Halliburton (HAL) Stock in the Spotlight Today?

Halliburton (NYSE:HAL) stock is in focus after the company reported stronger-than-expected first-quarter results today. Halliburton sells equipment used to locate and drill for oil.

photo of Halliburton (HAL) logo in red on building with truck in front
Source: hkhtt hj / Shutterstock.com

The company reported adjusted earnings per share of 35 cents, versus analysts’ average estimate of 34 cents. Halliburton’s revenue came in at $4.28 billion, slightly higher than the mean estimate of $4.2 billion. Its sales climbed 24% versus the same period a year earlier, while its adjusted EPS soared 84% YOY. Halliburton CEO Jeff Miller said:

“I expect our strong international business to increase throughout the remainder of the year. First quarter revenue growth in all our international regions together with North America demonstrates that this multi-year upcycle is well underway. … Both of our divisions delivered strong margin performance despite weather and supply chain disruptions, with Drilling and Evaluation margin eclipsing 15% in the first quarter for the first time since 2010.”

Halliburton anticipates that it will deliver high free cash flow going forward. HAL stock had jumped 82% in 2022 and more than 100% over the preceding 12 months.

What Does Wall Street Think About HAL Stock?

On April 1, Goldman Sachs identified Halliburton as a firm with a great deal of “pricing power.” According to Goldman, “Pricing power will become increasingly important in the face of continued inflation and cost pressures.”

JPMorgan Chase last month estimated that Halliburton had not obtained more than 2% of its sales from Russia. Halliburton had announced on March 18 that “it immediately suspended future business in Russia” and had decided to “wind down” [its] remaining operations in Russia.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.

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