A Preview Of Halliburton's Earnings

Halliburton HAL unveils its next round of earnings this Tuesday, July 20. Get prepared with Benzinga's ultimate preview for Halliburton's Q2 earnings.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Halliburton earnings will be near $0.23 per share on sales of $3.74 billion, according to analysts. In the same quarter last year, Halliburton posted EPS of $0.05 on sales of $3.20 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Tuesday, earnings would be up 360.0%. Revenue would be up 17.02% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past:

Stock Performance

For a full 12 months, the return has risen by 33.03%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Halliburton is scheduled to hold the call at 09:00:00 ET and can be accessed here.