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On Wednesday, Stifel analysts maintained a Buy rating and a $42.00 price target for Halliburton (NYSE:HAL), following the company's fourth-quarter earnings report for 2024. With a current P/E ratio of 10.3x and an EBITDA of $5.1 billion for the last twelve months, Halliburton's performance in the quarter aligned closely with Stifel's projections, with slight variations in revenue, operating income, EBITDA, and EPS. According to InvestingPro analysis, the company appears undervalued based on its Fair Value estimate.
Halliburton's revenue in North America matched Stifel's expectations, while the company's operations in the Eastern Hemisphere performed better than anticipated. This positive result was somewhat tempered by weaker than expected outcomes in Latin America, particularly in Mexico. Looking ahead, Halliburton's management anticipates a sequential decline in North American revenue for 2025, which Stifel's analysis suggests could be around a 3% drop, aligning with general market expectations. InvestingPro subscribers can access detailed financial health metrics and 12 additional ProTips to better understand the company's operational strength.
The firm highlighted Halliburton's robust financial position, noting the company's strong balance sheet. With a healthy current ratio of 2.21 and moderate debt levels, the company maintains strong financial flexibility. In 2024, Halliburton returned a substantial $1.6 billion to its shareholders and is expected to continue leveraging its strong free cash flow (FCF) to support both dividends and share buybacks in 2025 and beyond. The company has maintained dividend payments for 54 consecutive years, demonstrating consistent shareholder returns.
Stifel's outlook on Halliburton's stock remains neutral post-earnings release, and analysts are looking forward to the company's conference call for further insights. Key areas of interest for Stifel include commentary on pressure pumping prices, margin expectations, detailed impacts of the anticipated revenue decline in North America, and projections for international growth. For comprehensive analysis of Halliburton's financial metrics and future prospects, investors can access the detailed Pro Research Report available on InvestingPro.
In other recent news, Halliburton Company reported fourth-quarter earnings that met expectations, however, revenue fell short of analyst projections. The oilfield services company posted adjusted earnings per share of $0.70, meeting Wall Street forecasts, but revenue reached only $5.61 billion, slightly below the consensus estimate of $5.64 billion. Halliburton's total revenue declined 2% compared to the previous quarter and 2.2% year over year, which the company attributed mainly to lower stimulation activity in North America and decreased pressure pumping services in Latin America.
Halliburton's CEO, Jeff Miller, expressed satisfaction with the company's performance in 2024, generating over $2.6 billion in free cash flow and returning over $1.6 billion to shareholders. Despite expectations of a "sequentially softer" 2025 in North America, Miller remains optimistic about the company's long-term outlook. The company's operating income for the fourth quarter was reported at $932 million, up from $871 million in the third quarter.
Halliburton also reported a 7% sequential decrease in North America revenue to $2.2 billion, while international revenue rose 3% to $3.4 billion. The company repurchased approximately $309 million of its common stock during the quarter and returned 60% of free cash flow to shareholders through dividends and share buybacks in 2024. These are some of the recent developments at Halliburton.
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