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Halliburton (NYSE:HAL) is scheduled to release its 1st quarter 2013 earnings on Monday, April 22nd at 9:00 am ET. Below I have provided an update of the quarter as well as an overview of earnings expectations.

Profile and Estimates

Halliburton has a market cap of $36.95 billion and currently trades for $37.69 per share. Shares are up 14.78% YTD and trade 44.66% above their 52 week low of $26.05. Analysts have a mean target price of $49.41 and a median price target of $48.00 on the shares. Thirty two analysts have an average first quarter earnings per share estimate of $0.57 on estimated revenues of $6.89 billion. Halliburton has beat earnings estimates in three of the last four quarters.

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Fundamentals and Highlights (Data sources cited at end of article)

Positives

  • P/E of 13.9 and P/S of 1.3 both below the industry averages 18.5 and 1.5 respectively.
  • Average 3 year revenue growth of 24.8% which is above the industry averages 6.5%.
  • EPS growth (3 year average) of 30.8%.
  • ROE of 18.2 which is above the industry averages 12.0.
  • Dividend yield of 1.00%.
  • ROIC above 10% in 7 of the last 8 years, last year of 12.61%.
  • Book value has grown in each of the last 10 years, stood at $16.97 in December.

Negatives

  • P/B of 2.3 which is below the industry averages 2.0.
  • Free cash flow has declined in each of the last 3 years, was $88 million in 2012.
  • Capital intensive, cyclical, and subject to exchange rate and political risks.
  • High dependence on slowly recovering North American market.

Take Away

Halliburton shares have moved up significantly since the middle of November but the company is well positioned in growing markets and should benefit from its focus on cutting costs and becoming more efficient. I think the slow economy will put pressure on shares in the short term but would like my chances with Halliburton as a long-term investment. I favor Halliburton slightly over Schlumberger, my favorite two Oil & Gas Service companies, because of its lower market cap and managements forward thinking.

Sources

Ratios and financial trends sourced from Morningstar: Here and here.

Other company data sourced from annual report that you can find here.

Source: One Stop Halliburton 1st Quarter Earnings Preview