Has Halliburton Stock Hit Rock-Bottom?

A closer look at HAL ahead of its quarterly earnings next week

Jan 12, 2021 at 11:27 AM
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Halliburton Company (NYSE:HAL) is an American multinational oil corporation and one of the world's largest providers of products and services to the energy industry. The company has more than 40,000 employees and represents 140 nationalities in more than 80 countries. Halliburton also owns hundreds of subsidiaries, affiliates, branches, brands, and divisions worldwide.

Halliburton stock remains far off its peak, but has recovered substantially from its nine-year lows tapped back in March of 2020. However, Halliburton stock is currently trading down approximately 10% from its 52-week high of 24.52. So far in 2021, HAL stock has increased 8% year-to-date.

HAL will attempt to keep an impressive earnings beat streak alive on Jan. 19 when the company reports its fourth quarter earnings for 2020. Currently, Wall Street expects Halliburton stock to report an earnings per share (EPS) of $0.14, which marks a slight increase over the previous quarter. For reference, HAL beat expectations on earnings on four-for-four earnings reports released recently.

For the fourth quarter of 2019, HAL beat expectations by a margin of $0.03. The company reported an EPS of $0.32. For the first quarter of 2020, Halliburton stock decreased its reported EPS slightly down to $0.31, but still managed to beat analyst earnings expectations by a margin of $0.07. HAL reported another decrease in earnings for the second quarter of 2020. The company reported an EPS of $0.05 and beat expectations by a margin of $0.16. In the company's most recent quarterly report, Halliburton stock reported earnings of $0.11 per share. The company also beat expectation by a margin of $0.03.

The company also has a forward dividend of $0.18 and a forward dividend yield of 0.89%. HAL’s last dividend payment made to shareholders was for $0.045 per share. Halliburton has paid a dividend to shareholders since 1972.

Despite the company's consistent earnings performance, Halliburton seems to be in an overall decline. In just the past 12 months, Halliburton decreased its revenue by $6 billion and its net income by $3.2 billion. The company’s total net losses have added up to $4.36 billion this past year alone. Furthermore, Halliburton doesn’t seem to be much better off with its balance sheet. The company has over $10 billion in debt and just $2.1 billion in cash. The fundamentals are not strong with this one, investors.

Regardless, the security's Schaeffer's Volatility Scorecard (SVS) sits at a 99 out of 100, meaning HAL has exceeded option traders' volatility expectations during the past year.

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