Halliburton Beats, Increases Share Buybacks By $2B

The world's second-largest oilfield contractor, Halliburton Co., reported 2Q net income Monday of $1.53 billion, good for EPS of $1.62 on 20% higher revenue. The net total includes a gain of $933 million from the spinoff of KBR Inc. in January. Earnings from continuing operations were $595 million, good for EPS of $0.63; revenue jumped 20% to $3.74 billion. Consensus analyst estimates were for EPS of $0.56 on revenue of $3.50 billion. In the press release, Chairman, President and CEO Dave Lesar said: "We are pleased with this quarter's results in the Eastern Hemisphere, where we posted 14% revenue and 21% operating income growth as compared to the first quarter of 2007. Our operating income margins in the Eastern Hemisphere increased to nearly 22%... In addition, we have seen a strong recovery in the United States well stimulation market from the slowdown we experienced last winter." Additionally, Halliburton's board of directors increased the company's share repurchase program by an additional $2 billion to a total of $5 billion. Competitor Schlumberger also reported a beat quarter Friday on international sales strength. Halliburton's shares are higher by 2.46% in pre-market action as of 7:34 a.m. EST.

Sources: Press Release, Bloomberg, Wall Street Journal, Reuters, MarketWatch
Commentary: Schlumberger Beats As Strong International Operations Offset N. American Weakness • Halliburton Seeking Investors; Considering $80 Billion in Projects Over 5 Years • Halliburton: Is Its Discount Warranted?
Stocks/ETFs to watch: Halliburton Company (HAL). Competitors: Schlumberger Limited (SLB), Baker Hughes Inc. (BHI), BJ Services (BJS). ETFs: iShares Dow Jones US Oil Equipment (IEZ), Oil Service HOLDRs (OIH), Vanguard Energy (VDE)

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