Halliburton Co (NYSE:HAL) stock fell 0.42% (As on January 23, 11:23:30 AM UTC-4, Source: Google Finance) after the company reported fourth quarter earnings that met expectations, but revenue fell short of analyst estimates. The company reported operating income of $932 million for the fourth quarter, up from $871 million in the third quarter. North America revenue fell 7% sequentially to $2.2 billion, while international revenue rose 3% to $3.4 billion. Halliburton generated $3.9 billion of cash from operations and $2.6 billion of free cash flow.
Moreover, for completion and production division, revenue in Q4 was $3.2 billion, a decrease of 4% sequentially. Revenues were primarily driven by lower stimulation activity in North America and decreased pressure pumping services in Latin America. Partially offsetting these decreases were improved artificial lift activity in North America and increased stimulation activity in Africa and the Middle East. In the drilling and evaluation division, revenue in Q4 was $2.4 billion, and operating income was $401 million, both flat sequentially.
HAL in the fourth quarter of FY 24 has reported the adjusted earnings per share of 70 cents, which is inline with the analysts’ estimates for the adjusted earnings per share of 13 cents. The company had reported the adjusted revenue decline of 2.2 percent to $5.61 billion in the fourth quarter of FY 24, missing the analysts’ estimates for revenue of $5.64 billion. Halliburton’s total revenue declined 2% compared to the previous quarter. The company attributed the sequential decrease primarily to lower stimulation activity in North America and decreased pressure pumping services in Latin America. Operating income was $932 million, and operating margin was 17%.
Additionally, Halliburton repurchased approximately $309 million of its common stock during the quarter. For the full year 2024, the company returned 60% of free cash flow to shareholders through dividends and share buybacks.
Looking ahead, Miller noted that while 2025 is expected to be “sequentially softer” in North America, he remains optimistic about Halliburton’s long-term outlook. This lower revenue for the year is driven in part by lower negotiated prices for a portion of the fleet, and the company expects to see the majority of the margin impact from these price revisions in our first-quarter results.
In 2025, the company expects flat international revenues for Halliburton year over year with growth in most international markets, offset by activity reduction in Mexico. Absent Mexico, the company expects the international franchise will grow low to mid-single digits next year.