Will Halliburton Q2 Results Beat Estimates?

(RTTNews) - Oilfield services provider Halliburton Co. (HAL) is likely to release its second-quarter results before the bell on Wednesday, July 20, with analysts polled by Thomson Reuters estimating a loss of $0.19 per share on revenue of $3.76 billion. Analysts' estimate typically exclude certain special items.

Last quarter, Halliburton reported a loss from continuing operations of $2.4 billion or $2.81 per share compared to a loss of $639 million or $0.75 per share in the previous year.

The company recorded company-wide charges related primarily to asset impairments and severance costs of about $2.1 billion, after-tax, or $2.39 per share, in the first quarter of 2016. Halliburton also recorded Baker Hughes acquisition-related costs of $378 million, after-tax, or $0.44 per share, in the first quarter of 2016. The company also incurred $45 million, after-tax, or $0.05 per share, of interest expense in the first quarter of 2016 associated with the $7.5 billion of debt issued in late 2015.

Income from continuing operations for the first quarter of 2016 was $64 million or $0.07 per share, excluding special items. Adjusted operating income was $225 million in the first quarter of 2016. Analysts expected earnings per share of $0.04.

Halliburton said market conditions continued to negatively impact its business in the first quarter of 2016. The rig count declined to historic lows during the quarter, in the face of continued depressed commodity prices, which created further widespread pricing pressure and activity reductions for the company's products and services on a global basis.

Total revenue was $4.20 billion compared to $7.05 billion generated a year ago. Analysts expected revenue of $4.17 billion, for the quarter.

May 1, Halliburton and Baker Hughes announced that the companies have terminated the merger agreement they entered into in November 2014, effective April 30, 2016.

"While both companies expected the proposed merger to result in compelling benefits to shareholders, customers and other stakeholders, challenges in obtaining remaining regulatory approvals and general industry conditions that severely damaged deal economics led to the conclusion that termination is the best course of action," said Dave Lesar, Chairman and Chief Executive Officer of Halliburton.

"...While disappointing, Halliburton remains strong. We are the execution company - our strategy, technologies and service quality are focused on helping customers maximize production at the lowest cost and driving industry leading growth, margins and returns," Lesar added.