Halliburton Q1 EPS Beats by 10% as NA Frac Capacity Recovers; PT Up 20%
Halliburton posted Q1 adjusted EPS of 55 cents on $5.40 billion revenue, beating estimates by 10% consensus. North America frac capacity tightened with early recovery signs, Middle East disruptions reduced EPS by 2–3 cents and Goldman Sachs raised its price target to $44.
1. Q1 Financial Performance
Halliburton posted adjusted EPS of 55 cents on $5.40 billion revenue in Q1, exceeding the consensus estimate of 50 cents by 10% and showcasing robust free cash flow generation across its service lines.
2. North America Recovery
Frac capacity utilization in North America tightened as the company eliminated gaps in its first-half schedule and saw an uptick in spot work demand, indicating early recovery in onshore completion activities.
3. Middle East Disruption Impact
Disruptions in the Middle East trimmed net income by 2–3 cents per diluted share in the quarter, with expected headwinds of 7–9 cents estimated for the second quarter as regional tensions persist.
4. Strategic Outlook and Targets
Goldman Sachs lifted its price target to $44, implying 20% upside, while the acquisition of Sekal and a multibillion-dollar completions award in Argentina underscore the company’s focus on technology integration and international growth.