Halliburton (HAL) Up 8.2% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Halliburton (HAL). Shares have added about 8.2% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Halliburton due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Halliburton Company before we dive into how investors and analysts have reacted as of late.Halliburton Q1 Earnings and Revenues Beat Estimates, Both down Y/YHalliburton reported first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents due to softer activity in the North American region and the negative impact of geopolitical conflict in the Middle East, which hurt both of the company’s segments.Meanwhile, Houston, TX-based oil and gas equipment and services company’s revenues of $5.4 billion were 0.3% lower year over year but beat the Zacks Consensus Estimate of $5.3 billion.Inside Halliburton’s Regions & SegmentsInside Halliburton’s Regions & SegmentsNorth American revenues fell 4% year over year to $2.1 billion, due to reduced stimulation and artificial lift activity in US Land, along with lower stimulation and fluid services in the Gulf of America, but beat our projection by more than $45 million. On the other hand, revenues from Halliburton’s international operations increased 3% from the year-ago period to $3.3 billion.The Completion and Production earned $439 million in operating income, lower than last year’s $531 million, due to lower stimulation activity in North America and drops in completion tool sales and pressure pumping services in the Middle East. However, the figure beat our estimate of $427 million, thanks to higher completion tool sales in the Western Hemisphere and stronger pressure pumping services in Africa.The Drilling and Evaluation unit’s profit fell to $351 million in the first quarter of 2026 from $352 million in the same period of 2025. This decline was caused by lower activity across several product service lines in the Middle East, reduced wireline activity in the Eastern Hemisphere and a drop in fluid services in the Gulf of America. However, the result came in above our $336 million estimate, driven by higher project management activity in Latin America and a rise in drilling-related services across Europe and the Western Hemisphere.Balance SheetHalliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, the company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6. HAL bought back $100 million worth of its stock and invested $42 million in the SAP S/4 migration during the first quarter of 2026. The company generated $273 million of cash flow from operations in the first quarter, leading to a free cash flow of $123 million. Management Remarks & OutlookManagement believes that Halliburton is still in the early stages of its recovery in North America. With a clear focus on return on investment and maintaining capital discipline, management is confident that this approach will drive long-term growth and value for both the company and its shareholders.How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.VGM ScoresAt this time, Halliburton has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Halliburton has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks