Halliburton (HAL) reported 4Q earnings on Mon 25 Jan 2016 (before open)

** charts before earnings **

  

** charts after earnings **

  

Halliburton beats by $0.07, reports revs in-line :

• Reports Q4 (Dec) earnings of $0.31 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $0.24; revenues fell 42.1% year/year to $5.08 bln vs the $5.13 bln Capital IQ Consensus. 
  • As a result of the downturn in the energy market and its corresponding impact on the company's business outlook, Halliburton recorded co-wide charges related primarily to asset write-offs and severance costs of ~$192 million, after-tax, or $0.22 Adjusted operating income was $473 mln in Q4, compared to adjusted operating income of $506 million in Q3.
• Completion and Production rev -12% QoQ to $2.8 bln, primarily driven by activity and pricing headwinds in all regions; operating income -12% QoQ to $144 mln.
• Drilling and evaluation rev -5% QoQ to $2.3 bln, driven primarily by decreased drilling activity and logging services in the United States, Latin America, and Europe/Africa/CIS, along with reduced project management activity and drilling services in Middle East/Asia; operating income flat QoQ at $399 mln.
• "For our international business, fourth quarter revenue and operating income declined sequentially by 5% and 10%, respectively, as a result of price concessions and activity declines. In addition, due to customer budget constraints, we did not see the typical benefit from year-end equipment and software sales... North America revenue declined 13% sequentially, led by reduced activity and pricing concessions in US Land. Operating margins improved by 160 basis points, driven by cost reduction efforts, and year-end completion tool sales in the Gulf of Mexico.
• "2016 is expected to be another challenging year for the industry."
• Fully committed to Baker Hughes acquisition. "We are continuing our discussions with competition authorities, and recently offered an enhanced set of divestitures in an effort to resolve competition-related concerns as soon as possible."