Oilfield services provider Halliburton Co. reports earnings for the fiscal third quarter on Monday. The following is a summary of key developments and analyst opinion related to the period.
OVERVIEW: Analysts are expecting strong quarterly results from Halliburton and other oilfield service providers, as hurricane disruptions this year were minimal.
But during this quarter's round of conference calls, investors will likely be more interested in the Halliburton's outlook than its third-quarter results, analysts say.
Oil and natural gas prices have fallen recently, and investors are worried about a possible slowdown in North American drilling, which would hurt oilfield service providers' bottom lines. The Philadelphia Oil Service Sector Index, comprised of Halliburton and 14 other big industry players, has been steadily dropping, down about 23 percent since its peak in early May.
Some analysts expect the index to continue to fall through October and possibly into early November. A very cold winter, which would drain natural gas inventories and spur higher prices, could brighten prospects, analysts say.
In September, Halliburton announced it has nearly completed a $1 billion stock buyback authorized in February and that it approved the repurchase of up to an additional $2 billion, which analysts say should strengthen per-share earnings.
BY THE NUMBERS: Wall Street, on average, forecast quarterly profit of 54 cents per share on revenue of $5.52 billion, according to an analyst poll by Thomson Financial.
ANALYST TAKE: In a recent preview of the industry's third-quarter prospects, Goldman Sachs analyst Daniel Henriques said third-quarter results "should be solid, but it's all about the outlook."
Analysts predict earnings of 58 cents per share in the fourth quarter, and $2.06 for the year.
When Halliburton announced its new buyback authorization in September, Calyon Securities analyst Mark S. Urness said the move should add to earnings per share. But he kept his third-quarter earnings estimate at 54 cents per share because of uncertainty surrounding the timing of the spinoff of the company's KBR engineering and construction unit.
STOCK PERFORMANCE: Halliburton shares fell about 23 percent through the quarter, adjusting for a two-for-one stock split in July. The stock closed the third quarter at $28.45 after ending the second quarter at $74.21. Since then, shares dropped to a new 52-week low of $26.33 on Oct. 4 before recovering some ground to close Thursday at $29.38.
