Why Is Halliburton (HAL) Down 4% Since Last Earnings Report?

It has been about a month since the last earnings report for Halliburton (HAL). Shares have lost about 4% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Halliburton due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Halliburton Company before we dive into how investors and analysts have reacted as of late.Halliburton Reports In-Line Q2 EarningsHalliburtonreported second-quarter 2025 adjusted net income per share of 55 cents, the same as the Zacks Consensus Estimate but below the year-ago quarter’s profit of 80 cents (adjusted). The numbers reflect softer activity in the North American region, partly offset by international growth.Meanwhile, revenues of $5.5 billion were 5.5% lower year over year but beat the Zacks Consensus Estimate by 1.1%.Inside Halliburton’s Regions & SegmentsNorth American revenues fell 9% year over year to $2.3 billion and missed our projection by almost $60 million. Revenues from Halliburton’s international operations decreased 3% from the year-ago period to $3.3 billion but surpassed our estimate of $3.1 billion. The Completion and Production segment earned $513 million in operating income, lower than last year’s $723 million and our estimate of $537.7 million. The decline was due to lower prices for stimulation services in the U.S. Land, less work in the Middle East and a lull in domestic onshore artificial lift activity. However, stronger pressure pumping activity and higher demand for completion tools across the Western Hemisphere, notable well intervention services internationally, in addition to growth in pipeline and process services across the Eastern Hemisphere.The Drilling and Evaluation unit's profit fell to $312 million in the second quarter of 2025 from $403 million in the same period in 2024 and fell short of our estimate of $316.6 million. The downtick was caused by the seasonal slowdown in software sales, combined with elevated startup and mobilization expenses across several product service lines. This was partly offset by higher drilling-related services globally.Balance SheetHalliburton reported second-quarter capital expenditure of $354 million, higher than our projection of $338.2 million. As of June 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.4. HAL bought back $250 million worth of its stock during the April-June period. The company generated $896 million of cash flow from operations in the second quarter, leading to a free cash flow of $582 million.  Management Remarks & OutlookHalliburton’s management anticipates a softer oilfield services market in the near to medium term and plans to act accordingly, while staying committed to shareholder returns. International activity is expected to be mixed, with strength in some regions offset by declines in others. The company remains confident in its strategy, emphasizing growth in drilling, unconventional, and artificial lift. In North America, Halliburton aims to outperform peers through scale, technology leadership, and strong service execution.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.The consensus estimate has shifted -12.65% due to these changes.VGM ScoresAt this time, Halliburton has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Halliburton has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.Free Report: 3 Software Stocks Poised to SkyrocketSoftware stocks are poised to catapult higher in the coming months (and years) thanks to several factors, especially the explosive growth of AI. Zacks' urgent report reveals 3 top software stocks to own right now.Access the report free today >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Halliburton Company (HAL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks