Halliburton Co's Q1 Earnings Beat Estimates, Analysts Bullish on Stock

Citigroup's Scott Gruber raised their price target on Halliburton Co (NYSE: HAL) by 11.1% from $45 to $50 on April 24, 2024. The analyst maintained their Strong Buy rating on the stock. Gruber's optimistic outlook comes after the company's Q1 2024 earnings report, released on April 23, which showed impressive results and pointed towards a positive future for the oilfield-services company.

During Q1 2024, Halliburton Co reported earnings per share (EPS) of $0.76, surpassing the Zacks Consensus Estimate of $0.74 cents and showing a 5.6% increase compared to Q1 2023's $0.72. Revenue for the quarter stood at $5.8 billion, beating the Zacks Consensus Estimate of $5.7 billion and representing a 2.2% increase over Q1 2023's $5.68 billion. The company also demonstrated strong cash flow performance, with cash flow from operations reaching $487 million, up from Q1 2023's $122 million. Free cash flow also saw significant improvement, reaching $206 million compared to Q1 2023's $(105 million). Additionally, Halliburton repurchased $250 million in stock, showcasing their commitment to shareholder returns.

Chairman, President & CEO Jeff Miller expressed satisfaction with Halliburton's Q1 results, emphasizing the effectiveness of their strategy and execution. Miller highlighted the recovery of activity in North America from the lows experienced in Q4 and the consistent year-over-year growth of the international business over the past 11 quarters. He also expressed confidence in the company's future based on customers' multi-year activity plans across markets and asset types.

TD Cowen's Marc Bianchi also provided an update on Halliburton Co on April 24. Bianchi raised the price target for the stock by 2.1%, from $47 to $48, while maintaining a Strong Buy rating. This positive assessment aligns with Gruber's bullish outlook and indicates a consensus among analysts for the stock's potential.

Notably, all top-rated analysts currently rate Halliburton Co as either a Strong Buy or Buy. No analysts consider it a Hold, and there are no recommendations to sell the stock. This consensus among analysts suggests a high level of confidence in the company's future performance.

Looking ahead, analysts forecast that Halliburton Co will deliver earnings per share (EPS) of $3.19 for the upcoming year. If these predictions hold true, it would represent a 9.9% increase in EPS on a year-over-year basis.

Since the release of Halliburton Co's latest quarterly report on April 23, the stock price has increased by 0.3%. Year-over-year, the stock has shown impressive growth of 12.3%. However, during this period, Halliburton Co has trailed behind the S&P 500, which has experienced a substantial increase of 22.6%.

Scott Gruber, the Citigroup analyst who raised the price target on Halliburton Co, is ranked in the top 12% of Wall Street analysts by WallStreetZen. Gruber specializes in the Industrials and Energy sectors, among others, and has an average return of 5.4% and a 47.5% win rate.

Halliburton Company, an oilfield-services company, offers a range of services including cementing, completion equipment, pressure pumping, and drilling services. With headquarters in Houston, TX, and Dubai, UAE, Halliburton operates through numerous subsidiaries, affiliates, branches, brands, and divisions both in the United States and internationally. The company has a long history dating back to the 1920s.

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