Halliburton Company (HAL) shares took a dive in after-hours trading on Thursday after the oilfield services giant reported third-quarter earnings that fell short of Wall Street expectations. The company’s revenue dipped by 1.8% year-over-year to $5.697 billion, missing the consensus estimate of $5.828 billion. This decline was attributed to a combination of factors, including reduced pressure pumping activity in the United States, lower tool sales in North America and Europe, and hurricane disruptions in the Gulf of Mexico.
Despite the revenue shortfall, Halliburton’s international performance remained robust. Drilling and Evaluation revenue saw a 3.5% year-over-year increase to $2.398 billion, driven by higher drilling activity in Latin America, global software sales, and increased wireline activity in the Middle East. The company also highlighted its ongoing commitment to shareholder returns, reaffirming its full-year expectations for free cash flow and cash return to shareholders. Halliburton expects both metrics to accelerate in the fourth quarter.
In a statement accompanying the earnings release, Chairman, President, and CEO Jeff Miller acknowledged the impact of the August cybersecurity event and Gulf of Mexico storms on earnings, but expressed confidence in the company’s future prospects. He stated, “I see solid opportunities across business lines and geographies for Halliburton. As we execute on our strategy, we will target opportunities to deliver unique value, allocate capital to the highest return opportunities, and prioritize free cash flow generation and shareholder returns.”
Despite the company’s optimistic outlook, investors appeared to be focused on the immediate disappointment of the earnings miss. HAL shares were down 4.44% at $29.15 at the last check on Thursday, highlighting the market’s sensitivity to earnings expectations and the potential for volatility in the energy sector.
