Halliburton Company: Is Its International Market Growth Enough To Warrant A ‘Buy’ Rating?

Halliburton Company reported a total revenue of $5.8 billion for the second quarter, maintaining flat sequential growth. The company’s operating margin stood at 18%, representing a sequential increase of 69 basis points. International revenue reached $3.4 billion, marking an 8% year-over-year growth, primarily driven by a strong performance in Latin America, which saw a 10% increase. In contrast, North America revenue was $2.5 billion, experiencing an 8% decrease year-over-year, attributed to a 12% decline in rig count over the same period. Both the Drilling and Evaluation and Completion and Production divisions demonstrated year-over-year margin improvements. Halliburton generated $1.1 billion in cash flow from operations and approximately $800 million in free cash flow, repurchasing $250 million of its common stock during the quarter. In the international markets, Halliburton’s strategy of profitable growth continued to deliver solid results, with international revenue growing for the 12th consecutive quarter year-over-year. The company anticipates steady growth for the remainder of 2024, with an expectation of around 10% revenue growth for the full year in its international business. This outlook is supported by high demand for Halliburton’s services, increased activity levels, and equipment tightness across major basins.