In May, Halliburton and Baker Hughes called off their merger, which was once valued at almost $35 billion, after the companies had faced intense regulatory pressure on several continents.
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Currently, Halliburton has a Zacks Rank #3 (Hold) but that could change following its second-quarter 2016 results which has just released.
U.S. oil services giant Halliburton reported a $3.2bn loss in 2Q 2016 from its continuing operations on July 20, one-third as much again than its $2.4bn loss in the preceding 1Q quarter.
Revenue: Revenues of $3,835 million has surpassed the Zacks Consensus Estimate of $3,744 million.
Halliburton sees the market in North America turning around in the second half of the year after a drilling slump weighed on earnings. They had struck the deal in 2014, but it had appeared especially troubled since April, when the Justice Department filed a lawsuit to block it. The company booked $3.52 billion of costs related to terminating the Baker Hughes deal, as well as $423 million of other impairments and charges during the quarter.
“We believe the North America market has turned”, said Dave Lesar, Chairman and CEO.
Lower crude oil prices, which plummeted below $30 per barrel early this year, left energy companies with less capital to invest in exploration and production, a trend reflected in part by rig counts.
Halliburton’s second-quarter revenues of $2.1 billion fell almost 40 percent from the same time previous year as the USA oil bust potentially bottomed out.
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Analysts on average had expected a loss of 19 cents per share, according to Thomson Reuters I/B/E/S. The stock, which was still inactive in premarket trade, has climbed 32% year to date, while the S&P 500 has gained 5.9%.
