Halliburton Earnings: Signal to Buy Oil Services Stocks?

By
A A A

(Written by Rebecca Lipman. List compiled by Eben Esterhuizen, CFA. EPS and price data sourced from Yahoo! Finance)

When Halliburton (HAL), the second-largest oilfield service company in the world, reports good news it tends be good news for other oil service stocks too. That’s because producers are plowing billions of dollars into developing U.S. oil shale fields, tightening the market for equipment and allowing the service companies to maintain higher prices, according to CNBC.

The company’s higher-than-expected quarterly profits released Monday – HAL earned 94 cents per share, exceeding analysts’ average estimate of 92 cents – has therefore left drillers in anticipation of higher demand for their services.

This is particularly good news for shale energy companies as Halliburton’s earnings represent a rising demand for cheap and energy-independent fuels despite low natural gas prices, environmental concerns and a weakened economy.

In a Halliburton company statement Chief Executive Dave Lesar said “In North America, we see several meaningful differences from prior cycles, including a high level of oil-directed activity, an increased presence of large international customers, and strong credit availability that provide us continued confidence in the resiliency of the North America market.”

According to CNBC, many analysts expect the North American shale boom to continue through 2012.

Interested in exploring oil service companies that may echo the good news reported by Halliburton?

To help you explore this idea, we collected data on analyst earnings projections, and identified which oil service companies have seen an increase in their earnings estimates over the last 30 days.

Wall Street analysts think there’s strong profit growth at these companies-do you agree?

Use this list as a starting point for your own analysis.

Analyze These Ideas (Tools Will Open In A New Window)

1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize annual returns for all stocks mentioned

1. Baker Hughes Incorporated (BHI): Baker Hughes Incorporated supplies wellbore related products, and technology services and systems for drilling, formation evaluation, completion and production, and reservoir technology and consulting to the oil and natural gas industry worldwide. The EPS estimate for the company's current year increased from 4.35 to 4.36 over the last 30 days, an increase of 0.23%. This increase came during a time when the stock price changed by -7.97% (from 58 to 53.38 over the last 30 days).

2. Cameron International Corporation (CAM): Provides flow equipment products, systems, and services to oil, gas, and process industries worldwide. The EPS estimate for the company's current year increased from 2.67 to 2.68 over the last 30 days, an increase of 0.37%. This increase came during a time when the stock price changed by -5.96% (from 51.03 to 47.99 over the last 30 days).

3. FMC Technologies, Inc. (FTI): Provides technology solutions for the energy industry and other industrial markets. The EPS estimate for the company's current year increased from 1.71 to 1.72 over the last 30 days, an increase of 0.58%. This increase came during a time when the stock price changed by -2.61% (from 43.27 to 42.14 over the last 30 days).

4. Oil States International Inc. (OIS): Provides specialty products and services to the oil and gas drilling and production companies worldwide. The EPS estimate for the company's current year increased from 5.55 to 5.57 over the last 30 days, an increase of 0.36%. This increase came during a time when the stock price changed by -2.69% (from 62.81 to 61.12 over the last 30 days).

5. CARBO Ceramics Inc. (CRR): CARBO Ceramics Inc. manufactures and supplies ceramic proppants primarily used in the hydraulic fracturing of natural gas and oil wells in the United States and internationally. The EPS estimate for the company's current year increased from 5.53 to 5.54 over the last 30 days, an increase of 0.18%. This increase came during a time when the stock price changed by -23.52% (from 152.75 to 116.82 over the last 30 days).

6. Superior Energy Services Inc. (SPN): Provides specialized oilfield services and equipment to serve the production and drilling related needs of oil and gas companies. The EPS estimate for the company's current year increased from 2.09 to 2.1 over the last 30 days, an increase of 0.48%. This increase came during a time when the stock price changed by -29.49% (from 35.44 to 24.99 over the last 30 days).

7. Helix Energy Solutions Group, Inc. (HLX): Operates as an offshore energy company. The EPS estimate for the company's current year increased from 1.36 to 1.4 over the last 30 days, an increase of 2.94%. This increase came during a time when the stock price changed by -6.14% (from 16.46 to 15.45 over the last 30 days).

8. Newpark Resources Inc. (NR): Newpark Resources, Inc. and its subsidiaries provide fluids management, waste disposal, and well site preparation products and services primarily to the oil and gas exploration and production industry. The EPS estimate for the company's current year increased from 0.71 to 0.72 over the last 30 days, an increase of 1.41%. This increase came during a time when the stock price changed by -9.36% (from 7.91 to 7.17 over the last 30 days). 



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Commodities , Stocks

Referenced Stocks: BHI , CAM , CRR , SPN , HLX , NR , FTI , OIS

Kapitall

Kapitall

More from Kapitall:

Related Videos

Stocks

Referenced

Most Active by Volume

88,363,013
  • $102.47 ▲ 2.72%
76,664,591
  • $16.60 ▲ 2.09%
75,156,840
  • $13.20 ▼ 5.71%
53,255,668
  • $40.68 ▼ 6.03%
49,564,657
  • $96.87 ▲ 2.63%
42,649,404
  • $9.26 ▲ 1.09%
37,436,329
  • $31.19 ▲ 5.05%
35,538,826
  • $28.28 ▲ 1.25%
As of 10/21/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com