Halliburton's Soft Revenue Lags Estimates, Goldman Sachs Analyst Seeks Clarity On 2025 Activities

Halliburton Company (NYSE: HAL), a leading provider of products and services to the energy industry, reported mixed fourth-quarter 2024 results, with revenue falling short of analyst estimates. The company's shares traded lower by 3.93% at $28.37 the last check on Wednesday, January 22, 2025. Halliburton's revenue for the quarter was $5.610 billion, missing the consensus estimate of $5.63 billion, while earnings per share (EPS) of $0.70 slightly exceeded the analysts' expectations of $0.69.



Halliburton's revenue decline was primarily driven by a 2.3% year-over-year decrease in the Completion and Production segment, which fell to $3.2 billion, and a 0.4% increase in the Drilling and Evaluation segment, which reached $2.4 billion. The company attributed the sequential decline in the Completion and Production segment to lower stimulation activity in North America and decreased pressure pumping services in Latin America. Meanwhile, the Drilling and Evaluation segment's revenue held steady, with operating income also remaining flat sequentially.



Halliburton's North America revenue declined by 8.7% year-over-year to $2.213 billion, and also fell by 7% sequentially, impacted by lower stimulation, fluid, and wireline services, partially offset by stronger Gulf of Mexico fluid activity, improved U.S. drilling, and higher artificial lift and completion tool sales. International revenue rose by 3% sequentially to $3.4 billion, with Latin America dropping by 9% sequentially to $953 million, Europe/Africa growing by 10% sequentially to $795 million, and Middle East/Asia increasing by 7% sequentially to $1.6 billion.



Goldman Sachs analyst Neil Mehta sought clarity on Halliburton's outlook for 2025, as the company expects the North American market to be sequentially softer. Mehta noted that the company's international revenue growth and strong free cash flow position it well for the future. However, he also expressed concerns about the potential impact of lower North American activity on the company's overall performance.



In conclusion, Halliburton's soft revenue in the fourth quarter of 2024 lagged analyst estimates, with the company's shares trading lower following the results. The company's revenue decline was driven by lower stimulation activity in North America and decreased pressure pumping services in Latin America. Despite the mixed results, Halliburton maintained a focus on technology and service differentiation, with the launch of the Intelli diagnostic services and the iCruise Force rotary steerable system. The company's international revenue growth and strong free cash flow position it well for the future, but analysts seek clarity on the potential impact of lower North American activity on the company's overall performance in 2025.