Halliburton Feels the Earnings Crunch as North American Drilling Slows to a Crawl (HAL)

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Oilfield services giant Halliburton Company ( HAL ) on Wednesday posted a sharp downturn in third quarter profit, hurt by a big slowdown in North American drilling.

The Houston-based company reported third quarter net income of $602 million, or 65 cents per share, compared with $683 million, or 74 cents per share, in the year-ago period. Excluding special items, adjusted profit was 67 cents per share.

Revenue rose 8.6% from last year, however, to $7.11 billion.


On average, Wall Street analysts expected a matching profit of 67 cents per share, on higher revenue of $7.14 billion.

HAL noted that the biggest detriment to its quarter was a massive 60% drop in operating income in its North American segment.

Halliburton shares fell 53 cents, or -1.5%, in premarket trading Wednesday.

The Bottom Line
Shares of Halliburton ( HAL ) have a 1.04% dividend yield, based on last night's closing stock price of $34.56. The stock has technical support in the $28-$30 price area. If the shares can firm up, we see overhead resistance around the $37-$38 price levels.

Halliburton Company ( HAL ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



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.

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