HAL - What to expect from Halliburton Q3 earnings?

Halliburton ( NYSE: HAL ) is scheduled to announce Q3 earnings results on Tuesday, October 25th, before market open.

The world's biggest provider of hydraulic fracturing beat Q2 estimates for earnings and revenues and posted its biggest quarterly profit in nearly four years as it nearly sold out of equipment in the North American market.

Haliburton and other related stocks have been hit by a tumble in crude oil prices amid a strengthening U.S. dollar and fears of a recession.

WTI crude oil slides below $80/bbl in September for the first time since January. OPEC+ agreed earlier this month to cut production by 2M bbl/day, the biggest cut since 2020, as it seeks to halt the slide in oil prices.

The stock has an SA Quant rating of Hold but Wall Street analysts and SA authors have been more positive, viewing Halliburton as a Buy. The OPEC+ production cuts will help lift the stock in the near term, and the company "may be going into a fantastic 2 to 3-year period following the recent debt retirement" according to one SA contributor's analysis.

Another analysis suggests Halliburton will benefit from rising oil & gas capital spending to meet ongoing demand and potential Russian supply disruptions, as well as strong pricing in the US and the need to expand production overseas.

Meanwhile, peer Baker Hughes ( BKR ) posted better-than-expected adjusted Q3 earnings last week, saying many of the "unique challenges" presented in 2022 "should be behind us" in 2023.

Over the last 3 months, EPS estimates have seen 4 upward revisions and 0 downward. Revenue estimates have seen 2 upward revisions and 1 downward. The consensus EPS Estimate is $0.56 (+100.0% Y/Y) and the consensus Revenue Estimate is $5.34B (+38.3% Y/Y).

Over the last 2 years, HAL has beaten EPS estimates 100% of the time and has beaten revenue estimates 63% of the time.

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