Halliburton Reports Q4 2024 Results with Mixed Market Outlook

Halliburton has released its Q4 2024 earnings with net income at $0.70 per share. The company's revenue growth faces challenges in North America, which could influence its stock price as it adapts to market dynamics.

Date: 23-01-2025

AI Rating: 6

Market Position and Revenue Performance

Halliburton reported full-year total company revenue of $22.9 billion. The company's international business achieved a 6% year-over-year revenue growth, while the North America business declined by 8%. These figures indicate a strong performance in international markets but challenges in North America, which could impact investor sentiment.

Free Cash Flow and Shareholder Returns

Halliburton generated $3.9 billion of cash from operations and $2.6 billion of free cash flow, demonstrating solid financial health. The company returned $1 billion in stock repurchases and paid $600 million in dividends, representing a 60% return of free cash flow. Such returns are favorable for shareholders and may positively influence stock prices.

Future Outlook and Market Trends

The company expressed confidence in the energy sector, noting a growing dependence on oil and gas alongside increases in renewable energy. Halliburton identifies growth engines in drilling technology, unconventionals, well intervention, and artificial lift, potentially generating an additional $2.5 billion to $3 billion in revenue over the next three to five years. This future growth outlook might attract investor interest.

Earnings Per Share (EPS), Revenue Growth, and Free Cash Flow (FCF)

1. Earnings Per Share (EPS): Reported EPS is $0.70. Rating: 6 (Neutral performance, meets expectations).

2. Revenue Growth: International revenue grew 6%, but North America declined by 8%. Rating: 5 (Slightly negative due to regional challenges).

3. Free Cash Flow (FCF): Achieved $2.6 billion in FCF, representing strong cash flow generation. Rating: 7 (Slightly positive, exceeding expectations).

Stocks: HAL