Halliburton's Q2 Revenue Miss Highlights Challenges In US Market, Despite International Gains

Halliburton Company HAL shares are trading lower after the company reported second-quarter 2024 revenue of $5.833 billion, missing the consensus of $5.949 billion.

Completion and Production revenue was $3.4 billion, flat Q/Q. Revenue growth from increased completion tool sales and stimulation activity abroad, as well as improved well-intervention services, was offset by lower stimulation and completion tool sales in the U.S. and decreased artificial lift services in North America.

Drilling and Evaluation revenue came in at $2.4 billion, flat Q/Q. Results benefitted from increased drilling services in Europe, North America, and Asia, higher wireline activity in the Western Hemisphere and Europe, and a rise in international testing services.

HAL’s North America revenue fell 3% Q/Q to $2.5 billion due reduced pressure pumping services in U.S. land and lower activity in the Gulf of Mexico.

International revenue was $3.4 billion, an increase of 3% Q/Q, with revenue from Latin America flat Q/Q, Europe/Africa +4% Q/Q, and Middle East/Asia +5% Q/Q.

Operating income stood at $1.032 billion (+5% Q/Q), with an operating margin of about 18% in the quarter.

EPS of $0.80 was in line with the consensus.

The company repurchased ~$250 million of its common stock during the quarter.

Operating cash flow stood at $1.1 billion for the quarter, and free cash flow was $800 million.

Jeff Miller, Chairman, President, and CEO, said, “In our international markets we see strong demand for Halliburton’s services, high activity levels, and equipment tightness across all major basins.”

Investors can gain exposure to the stock via VanEck Oil Services ETF OIH and IShares U.S. Oil Equipment & Services ETF IEZ.

Price Action: HAL shares are down 4.53% at $34.80 premarket at the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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