Halliburton $HAL Stock Up On Beats, Price Target Hikes

HAL stock chart

HAL stock rose 7% on January 25, 2022, when most of the market was deeply in the red. The reason for the outperformance on January 25, 2022, was the EPS and revenue beats and positive analysts comments.

Halliburton Announces Fourth Quarter 2021 Results and Increases Dividend

On January 24, 2022, Halliburton reported Q4 adjusted EPS of 36c versus the consensus estimate of 34c. The company reported Q4 revenue of $4.3B versus the consensus estimate of $4.09B.

Halliburton Company (NYSE: HAL) announced net income of $824 million, or $0.92 per diluted share, for the fourth quarter of 2021. This compares to net income for the third quarter of 2021 of $236 million, or $0.26 per diluted share. Adjusted net income for the fourth quarter of 2021, excluding tax adjustments, was $320 million, or $0.36 per diluted share. This compares to adjusted net income for the third quarter of 2021, excluding special items, of $248 million, or $0.28 per diluted share. Halliburton’s total revenue for the fourth quarter of 2021 was $4.3 billion compared to revenue of $3.9 billion in the third quarter of 2021. Reported operating income was $550 million in the fourth quarter of 2021 compared to reported operating income of $446 million in the third quarter of 2021. Reported operating income of $550 million in the fourth quarter of 2021 increased 20% compared to adjusted operating income of $458 million in the third quarter of 2021, excluding special items.

“I am pleased with our solid execution in the fourth quarter and for the full year. Both operating divisions experienced revenue growth in the international and North America markets. Our Completion and Production division delivered solid mid-teens margins, and our Drilling and Evaluation division margins surprised to the upside,” commented Jeff Miller, Chairman, President and CEO.

“Today’s announcements of the dividend increase and debt retirement demonstrate my confidence in our business, customers, employees, and value proposition.

“I am excited about the accelerating multi-year upcycle. I expect the macro industry environment to remain supportive and the international and North America markets to continue their simultaneous growth.

“Halliburton uniquely benefits from this constructive environment. Our value proposition works, we have the right strategies for both international and North America markets, we are leaders in digital and automation, and we drive capital efficiency while advancing a sustainable energy future. I fully expect that Halliburton will accelerate cash flow generation, strengthen our balance sheet, and increase cash returns to shareholders in this upcycle,” concluded Miller.

Halliburton price target raised to $34 from $32 at RBC Capital

On January 25, 2022, RBC Capital analyst Keith Mackey raised the firm’s price target on Halliburton to $34 from $32 and keeps an Outperform rating on the shares. The company’s Q4 results topped expectations on most key metrics, and the company increased its dividend earlier than expected, which reflects the management’s confidence in its ability to expand its margins while controlling capital expenditures throughout the cycle, the analyst tells investors in a research note.

Halliburton price target raised to $32 from $29 at BMO Capital

On January 25, 2022, BMO Capital analyst Philip Jungwirth raised the firm’s price target on Halliburton to $32 from $29 and keeps a Market Perform rating on the shares. The company’s Q4 revenues and margins outperformed, with solid free cash flows, the analyst tells investors in a research note. Jungwirth is also positive on Halliburton’s dividend raise to 12c per share and the management’s message of additional cash return as leverage is reduced.

Halliburton price target raised to $33 from $32 at Susquehanna

On January 25, 2022, Susquehanna analyst Charles Minervino raised the firm’s price target on Halliburton to $33 from $32 and keeps a Positive rating on the shares. The analyst raised his estimates following the company’s Q4 results while they reaffirmed prior commentary that it sees a multi-year upcycle unfolding for the oilfield services industry, underpinned by a tightening global supply/demand balance and strong commodity price environment.

Halliburton price target raised to $33 from $30 at Citi

Also on January 25, 2022, Citi analyst Scott Gruber raised the firm’s price target on Halliburton to $33 from $30 and keeps a Buy rating on the shares. The analyst says the company is delivering on capital return.

📺 Energy Sector Halliburton (HAL) and Chevron (CVX) Stocks

Energy Sector Halliburton (HAL) and Chevron (CVX) Stocks

📈 HAL Stock Technical Analysis

HAL stock chart as of January 25, 2022.

The long and short term trends are both positive. This is looking good. HAL is one of the better performing stocks in the Energy Equipment & Services industry, it outperforms 89% of 103 stocks in the same industry. HAL is currently making a new 52 week high. This is a strong signal considering that the S&P500 Index is not trading near new highs. HAL is currently showing a bull flag pattern. A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry. Volume is considerably higher in the last couple of days, which is what you like to see during a strong movement up.

There is a support zone ranging from 27.54 to 27.84. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. There is also a support zone ranging from 22.30 to 22.65. This zone is formed by a combination of multiple trend lines in multiple time frames. Finally, there is support at 18.67 from a trend line in the weekly time frame.

Although HAL has an excellent technical rating, it does not offer a high quality setup at the moment. HAL stock has a Setup Rating of 2 out of 10. Prices have been extended to the upside lately. For a nice entry it is better to wait for a consolidation. Click here to sign up for email alerts on when HAL stock consolidates and has a Setup Rating of 8 or higher.

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