HAL
SLB Eyes 31% Profit Drop as Iran Conflict Tests Oilfield Services
Article Summary
HOLD- Halliburton Co. (NYSE: HAL) begins earnings season with modest expectations for a 2% decline in EPS as the Iran conflict continues to weigh on demand for oilfield services, while SLB is projected to report a 31% profit drop, the company's largest decline since the final quarter of 2020.
- Analysts expect Baker Hughes (NASDAQ: BKR) to post a 21% decline on Sunday, while Weatherford International (NASCAR: WFRD) and Halliburton indicated the second-quarter impact could be greater as operations were halted and the timing of any recovery remained uncertain.
- The April-to-June period marked the first full quarter since the U.S.-Israeli war with Iran intensified, forcing oil production to be reduced or suspended in countries including Iraq, Qatar and Kuwait, with some Middle Eastern production returning sooner than expected, raising questions about reservoir conditions and recovery timelines.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | -1.7% | 25% | 0.0 ptsDeclining (-1.7%) - NOT a growth stock |
| EPS Growth Next 5Y ? | 12.1% | 25% | 35.0 ptsBelow Screener (12.1%) - Modest outlook |
| Target Price Upside ? | 26.6% | 20% | 75.0 ptsSignificant Upside (26.6%) - Target: $44.46 vs Current: $35.11 |
| Gross Margin % ? | 15.3% | 15% | 20.0 ptsThin (15.3%) - Low-margin business |
| Drawdown from 52-Wk High ? | -19.5% | 15% | 40.0 ptsMild Pullback (-19.5%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About HAL
- Halliburton Company provides products and services to the energy industry worldwide.
- It operates in two segments, Completion and Production, and Drilling and Evaluation.
- The Completion and Production segment offers production enhancement services that include stimulation and sand control services; cementing services, such as well bonding and casing, and casing equipment; and completion tools that offer downhole solutions and services, including well completion products and services, intelligent well completions, liner hanger systems, sand control systems, multilateral systems, and service tools.
- This segment also provides electrical submersible pumps, as well as artificial lift services; production solutions comprising coiled tubing, hydraulic workover units, downhole tools, and pumping and nitrogen services; pipeline and process services, such as pre-commissioning, commissioning, maintenance, and decommissioning; and specialty chemicals and services.
- The Drilling and Evaluation segment offers drilling fluid systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste management services; drilling systems and services; wireline and perforating services consisting of open-hole logging, and cased-hole and slickline; and drill bits and services comprising roller cone bits, fixed cutter bits, hole enlargement, and related downhole tools and services, as well as coring equipment and services.
- This segment also provides cloud based digital services and artificial intelligence solutions on an open architecture for subsurface insights, integrated well construction, and reservoir and production management; testing and subsea services, such as acquisition and analysis of reservoir information and optimization solutions; and project management and integrated asset management services.
- Halliburton Company was founded in 1919 and is based in Houston, Texas.