Halliburton Company (NYSE:HAL) the actions are trading lower on Wednesday.
Goldman Sachs analyst Neil Mehta reiterated a buy rating on the stock, with a price prediction of $36.
Halliburton reported a fourth-quarter revenue decline of 2.3% year-over-year to $5.610 billion. missing the consensus of $5.63 billion. Completion and production revenue fell 4.2% year-over-year to $3.2 billion, with operating profit of $629 million.
The analyst noted that the decline in revenue was primarily due to a decline in completion and production, partially offset by drilling and appraisal. North America revenues were 7% below the analyst estimate, while international revenues were 3% higher.
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Mehta writes that free cash flow for the quarter was $1.104 billion, beating the analyst estimate of $930 million and the consensus of $1.045 billion. The exceedance was attributed to better working capital and lower capital expenditures ($426 million versus analysts’ estimate of $454 million).
During the quarter, the company repurchased approximately $309 million of common stock, in line with the analyst’s estimate of $310 million.
The analyst is uncertain about revenue growth by region in 2025 and seeks to clarify expectations for business in the international market, particularly in the Middle East.
Mehta questions how investors should view long-term margin expansion, especially in a stagnant business environment.
Additionally, the analyst is ambiguous about Halliburton’s future involvement in the energy sector, including its partnership with VoltaGrid. Finally, there is uncertainty about how capital returns in 2025 should be approached, the analyst points out.
Price action: HAL shares are trading down 1.51% at $29.09 at last check Wednesday.
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|
Date |
Farm |
Action |
From |
HAS |
|---|---|---|---|---|
|
January 2022 |
Morgan Stanley |
Maintains |
Overweight |
|
|
January 2022 |
J.P. Morgan |
Upgrades |
Neutral |
Overweight |
|
January 2022 |
Morgan Stanley |
Upgrades |
Equal weight |
Overweight |
View more analyst ratings for HAL
View the latest analyst ratings
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This item Halliburton’s weak revenue lags estimates, Goldman Sachs analyst seeks clarity on 2025 business originally appeared on Benzinga.com
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