Stock Ticker

  • Loading stock data...

Halliburton Company (NYSE:HAL): International Operations Responding Well, But Stock Show Limited Upside

Boston, MA 04/14/2014 (wallstreetpr) – Halliburton Company (NYSE:HAL) provides exploration, development and production services in the energy industry. The company thrives in the pressure pumping business.

The company is facing sluggish demand for its services in the North American market, especially due to an oversupply of pressure pumping solutions, a situation that has resulted in pricing pressure thus limiting revenue from the segment.

The oil field services provider long looked to the U.S. for the majority of its revenue, but demand and pricing issues are gradually turning the company’s attention to the international markets.

Efforts to penetrate strongly into the international market have paid off for the company, and the trend is expected to continue as international exploration and drilling activities increase. Moreover, Halliburton Company (NYSE:HAL) currently enjoys strong business network in the international market, thanks to its superior services and competitive marketing efforts.

Aggressive on both markets

Although Halliburton Company (NYSE:HAL) is beginning to win reliable businesses in the international scene as can be seen in its widely strong fourth quarter performance, the North American operations are still very important for the company. On that note, the company needs to have its eyes on both markets to ensure that its revenue is not impacted when one market is struggling.

Most recent performance

The company earned 93 cents per share in the fourth quarter, topping Wall Street view of 89 cents. Revenue also came in higher than expected at $7.6 billion, against $7.56 billion expected by Wall Street. The revenue jumped 4.8 percent over the comparable quarter a year prior. Analysts expect the company to realize full-year EPS of $3.95.

Proceed with caution

While there is no doubt that going big internationally is having its positive impact on the revenue and earnings performance of Halliburton Company (NYSE:HAL), there seems to be little upside room in the stock price. Having attained one-year jump of almost 55 percent, the stock has covered much of the ground, and its upside potential looks limited.

Published by Duncan Oleinic

Duncan Oleinic is from New Yourk. After graduating with a degree in physics, he began his career as an analyst in a broking firm. Through this experience he was able to advance to the role of correspondent for a U.S based financial news provider, where he worked from 2001 to 2007. He subsequently joined a merchant banking firm as a financial analyst focused on valuing unlisted companies in the sub-continent. Over the course of his two years here, he performed valuations of several media companies which were later acquired by peers.

Recent Stories

SignUp Now For Our Featured Newsletter