Halliburton Company (NYSE:HAL) stock is Trading lower on Wednesday.
Goldman Sachs Analyst Neil Mehta reiterated his buy rating on the stock, With an expected price of $36.
Halliburton reported its fourth-quarter revenue fell 2.3% year over year to $5.610 billion. Missing the consensus of $5.63 billion. Completion and production revenue declined 4.2% year-over-year to $3.2 billion, with operating income of $629 million.
The analyst noted that the weaker revenues were mainly due to lower completion and production levels, which were partially offset by drilling and appraisal work. North American revenues were 7% below analyst estimates, while international revenues were 3% higher.
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Free cash flow for the quarter was $1.104 billion, beating analyst estimates of $930 million and the consensus of $1.045 billion, Mehta writes. This outperformance was attributed to improved working capital and lower capital expenditures ($426 million vs. analyst estimates of $454 million).
During the quarter, the company repurchased approximately $309 million of common stock, in line with analyst estimates of $310 million.
The analyst is uncertain about 2025 revenue growth by region and seeks clarification on the outlook for activity in the international market, especially in the Middle East.
Mehta has questions about how investors should view margin expansion over the long term, especially in a flat activity environment.
Additionally, the analyst is vague about Halliburton’s future involvement in the energy space, including its partnership with Voltagrid. Finally, there is uncertainty about how capital returns will be handled in 2025, the analyst highlights.
Price action: HAL shares are trading 1.51% lower at $29.09 at last check on Wednesday.
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JP Morgan |
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neutral |
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Morgan Stanley |
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This article Soft Halliburton revenue estimates delayed, Goldman Sachs analyst seeks clarity on 2025 activities Originally appeared on Benzinga.com
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