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Halliburton Company (NYSE:HAL) shareholders are probably feeling a little disappointed, since its shares fell 5.8% to US$20.65 in the week after its latest first-quarter results. Results overall were not great, with earnings of US$0.24 per share falling drastically short of analyst expectations. Meanwhile revenues hit US$5.4b and were slightly better than forecasts. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the consensus from Halliburton's 24 analysts is for revenues of US$21.9b in 2025, which would reflect a perceptible 3.1% decline in revenue compared to the last year of performance. Statutory earnings per share are expected to descend 13% to US$2.12 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$22.0b and earnings per share (EPS) of US$2.61 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.
See our latest analysis for Halliburton
The average price target fell 5.9% to US$29.90, with reduced earnings forecasts clearly tied to a lower valuation estimate. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Halliburton at US$38.00 per share, while the most bearish prices it at US$22.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 4.1% annualised decline to the end of 2025. That is a notable change from historical growth of 9.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.5% per year. It's pretty clear that Halliburton's revenues are expected to perform substantially worse than the wider industry.