What do analysts expect from 1QFY15 results of Halliburton Company before the opening bell on Monday?
Haliburton Company will release its earnings for the quarter covering from January to March of fiscal year 2015 on Monday April 20 morning.
The oil company has witnessed harsh quarter as the rig count decreased substantially due to oil and gas E&P (exploration and production) companies dropped their capital expenditure so as to face the contrary effects of plunging prices of crude oil. The market expects Haliburton first quarter results will be greatly affected by the substantial decrease in rig count, reduction in cost of services, company’s dependability on the shale market of North America, which has already witnessed the significant impact of the rig count reduction.
Though, the negative effect on the North American shale market can be somewhat countered by the elasticity in the global market like Asia and Middle East. While the reduction in crude oil prices begin in June 2014, but it did not have any effect on Halliburton’s fourth quarter earnings, as its customers started to change their plans of capital expenditure for the whole year. It means that first quarter earnings report will reflect the whole picture on how a reduction in expenditure and the complete downturn will impact the company’s bottom-line.
Analysts are expecting the oilfield equipment company to post $6.89 billion in revenues, that is 21.5% decline on the consecutive basis and 6.3% on a year over year basis. In the previous 5 quarters, Haliburton failed to meet the revenue expectation only one time. Moreover, Haliburton stock was up after the day of its previous results for the consecutive four quarters. In the meantime, whisper numbers propose that the revenue will be around $7.25 billion.
The company is most likely to post earnings of $0.41 per share. In the meantime, whisper numbers propose that Haliburton will be able to report adjusted earnings per share of 51 cents. The Oklahoma-based company has only missed its EPS target once in the past eight quarters.
Haliburton CEO David J. Lesar said in a report, “I am pleased with our third quarter results; total company revenue of $7.5 billion was a record quarter for Halliburton, Consistent with prior years, we expect the fourth quarter in the Eastern Hemisphere to be our strongest quarter of the year, due to seasonal year-end software and equipment sales, with margins in the high teens.”
Stock Biz News 