Halliburton Company (NYSE: HAL) – Q2 FY 2011 Earnings Preview
By:NewsyStocks   Thursday, July 07, 2011 12:57 PM

Halliburton Company (NYSE: HAL), a service and product provider to companies in the energy sector, is scheduled to report its second quarter FY 2011 financial results ahead of the opening bell on July 18, 2011. In the last four quarters ended March 2011, the company's reported EPS exceeded Wall Street consensus estimates by margins in the range of 3.60 percent to 40.50 percent.

Halliburton is one of the top three providers of support services for early stage energy production. Halliburton serve major, national, and independent oil and natural gas companies throughout the world and operate under two divisions, which form the basis for the two operating segments it reports:  the completion and production segment and the drilling and evaluation segment. Halliburton has extensive market coverage in over 70 countries, and hopes to benefit from the rising oil prices and sustained demand from China and India.

On May 19, the company's board of directors declared a second quarter FY 2011 dividend of $0.09 per share on the company's common stock, paid to the shareholders on June 22, 2011.

For Q1 FY 2011

  • Halliburton reported total revenue of $5.2 billion, up 40 percent, compared with total revenue of $3.7 billion in the same quarter last fiscal.
  • Net income increased almost 150 percent to $511 million, compared with net income of $206 million in the comparable quarter last fiscal year.
  • Excluding the Libya charge of $46 million, net income for was $557 million, or $0.57 per diluted share.
  • Including the Libya charge earnings were $0.56 per diluted share, up from $0.23 per diluted share in the first quarter FY 2010.
  • Consolidated operating income was $814 million, compared with $449 million in the first quarter of FY 2010.

For FY 2010

Halliburton reported revenue of $17.97 billion, an increase of 22 percent, compared with total revenue of $14.67 billion in FY 2009. Operating income for the year increased 57 percent to $3 billion, from $1.9 billion in FY 2010. Net income for the full year was $1.83 billion, or $2.01 per diluted share, compared with net income of $1.14 billion, or $1.27 per diluted share, for FY 2009.

Company's Q2 Expectations

For the second quarter, Halliburton expects its Eastern Hemisphere margins to improve, but expects them to be affected by the current situation in Libya. In Iraq, its delayed integrated drilling projects are expected to begin in the second quarter.

Analysts Forecast:

For the second quarter, analysts' EPS estimates range from a low of $0.60 to a high of $0.80 per share, compared with a consensus estimate of $0.52 per share to $0.71 per share in the year ago quarter. For this quarter, analysts' revenue estimates range from a low of $5.37 billion to a high of $5.87 billion, compared with a consensus estimate of $4.39 billion to $5.64 billion in the same quarter a year ago. For the second quarter, the consensus EPS forecast has been increased from $0.70 per share estimated 60 days ago to the current estimate of $0.71 per share.

In the last 52 weeks, Halliburton's stock has been trading in the range of $24.26 to $51.45. The stock last traded at $48.69, up 5.32 percent, on June 28. During the current quarter, analysts at Global Hunter Securities brokerage firm, initiated the stock with a Buy rating.