Halliburton Q3 Earnings Preview: Here's What You Should Know

Halliburton Company (HAL) is set to release third-quarter results on Oct. 21. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a profit of 50 cents per share on revenues of $5.4 billion.Let’s delve into the factors that might have influenced the oilfield service firm’s performance in the September quarter. But it’s worth taking a look at HAL’s previous-quarter performance first.Highlights of Q2 Earnings & Surprise HistoryIn the last reported quarter, this Houston, TX-based provider of technical products and services to drillers of oil and gas wells met the consensus mark, reflecting softer activity in the North American region, partly offset by international growth. Halliburton reported adjusted net income per share of 55 cents, the same as the Zacks Consensus Estimate. Revenues of $5.5 billion beat the Zacks Consensus Estimate by 1.1%.HAL matched the Zacks Consensus Estimate thrice in the last four quarters and missed in the other. This is depicted in the graph below:Halliburton Company Price and EPS Surprise Halliburton Company price-eps-surprise | Halliburton Company QuoteTrend in Estimate RevisionThe Zacks Consensus Estimate for the third-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 31.5% fall year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 5.3% decrease from the year-ago period.Factors to ConsiderHalliburton’s North America revenues declined 9% year over year in the second quarter of 2025, marking the eighth straight quarterly drop and highlighting persistent regional weakness. The decrease was mainly due to weak customer activity and softer pricing in pressure pumping. The company noted that North American markets are likely to remain challenging, with limited clarity on customer budgets. Due to this soft operating environment, we expect third-quarter sales from the region to be $2.1 billion, suggesting an 11.2% drop on a year-over-year basis.Halliburton is also facing some challenges in Mexico, which is slowing down its international growth. In the second quarter of 2025, revenues from Latin America fell by a significant 11% year over year after falling 19% in the previous three-month period. The latest decline was primarily on account of a business slowdown in Mexico. Management admits that conditions in Mexico are still difficult, and they don't expect things to improve anytime soon. Going by our model, the company’s third-quarter Latin America revenues are likely to be $940.4 million, down almost 11% from the year-ago period. However, as a respite to the company, its pivot to digitalization and integrated services is gaining traction. The company’s growing technological edge, especially in its completions segment, is a key factor supporting its long-term upside. The company’s Zeus IQ platform, an autonomous, closed-loop hydraulic fracturing system, marks a significant step forward in automation and efficiency. By utilizing real-time reservoir feedback to guide fracturing without human intervention, Zeus IQ enhances well productivity and safety. This not only deepens client relationships but also ensures more stable and recurring revenues.What Does Our Model Say?The proven Zacks model does not conclusively predict an earnings beat for Halliburton for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of a beat. But that’s not the case here.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -2.61%.Zacks Rank: HAL currently carries a Zacks Rank #4 (Sell).Stocks to ConsiderWhile an earnings beat looks uncertain for Halliburton, here are some firms from the energy space that you may want to consider on the basis of our model:Core Laboratories (CLB) has an Earnings ESP of +5.26% and a Zacks Rank #3. The firm is scheduled to release earnings on Oct. 22. Core Laboratories has a market capitalization of $536 million. Carrying a Value Score of B, Core Laboratories has lost 36.5% in a year.Transocean Ltd. (RIG) has an Earnings ESP of +18.42% and a Zacks Rank #3. The firm is scheduled to release earnings on Oct. 29.The Zacks Consensus Estimate for Transocean’s 2025 earnings per share indicates 107.7% year-over-year growth. Valued at nearly $3 billion, Transocean has lost 22.3% in a year.HF Sinclair Corporation (DINO) has an Earnings ESP of +21.03% and a Zacks Rank #1. The firm is scheduled to release earnings on Oct. 30.You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for HF Sinclair’s 2025 earnings per share indicates 261.4% year-over-year growth. Valued at $9.8 billion, HF Sinclair has gained 17.3% in a year.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Transocean Ltd. (RIG): Free Stock Analysis Report Halliburton Company (HAL): Free Stock Analysis Report Core Laboratories Inc. (CLB): Free Stock Analysis Report HF Sinclair Corporation (DINO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks