Halliburton Q1 Earnings Beat Estimates On Strong Segment Performance

Halliburton Company HAL reported Q1 revenue growth of 33% Y/Y to $5.68 billion Tuesday, beating the consensus estimate of $5.5 billion.
Adjusted EPS of 72 cents beat the consensus of 67 cents.
Operating income increased to $977 million in Q1 from $511 million a year ago, and the margin expanded by 530 bps to 17.2%.
Completion and Production revenue increased 45% Y/Y to $3.4 billion, and the corresponding operating income increased by 125% Y/Y to $666 million. This was led by improved pressure pumping services, completion tool sales and enhanced artificial lift services in North America and and Kuwait.
Drilling and Evaluation revenue increased by 17% Y/Y to $2.3 billion, and operating income in the segment increased by 26% Y/Y to $369 million.
Halliburton's cash flows provided by operating activities were $122 million. The company held cash and equivalents of $1.9 billion.
Halliburton's Share Buyback: In Q1, Halliburton repurchased shares worth $100 million.
Jeff Miller, chair and CEO, said: "My Halliburton outlook -- for both the current year and the long-term -- is strong. We hear it from our customers, and we see it in our first quarter results. Our customers are clearly motivated to produce more oil and gas and service capacity is tight.
"Our strong execution culture, differentiated technology portfolio, and collaborative approach with customers - drive margin improvements and growth across our business. I am confident that we will execute our strategic priorities and deliver shareholder returns. I expect the execution of our strategy will deliver significant and growing free cash flow generation for Halliburton."
HAL Price Action: HAL shares are trading lower by 3.54% at $33.23 Tuesday morning.
Photo via Shutterstock.

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