Halliburton (IL/A): First Take: 3Q2005 results have something for bulls + bears - Goldman Sachs - October 24, 2005
Excluding hurricane impact + a $0.13 gain on the sale of an equity interest in a toll road, but including losses on Algeria E&C projects, recurring 3Q2005 EPS was $0.87 = in line w/ our est + above $0.82 consensus. Oilfield op. inc. ex-hurricane was in line as stronger Digital + Consulting Svs offset 2% weaker core oilfield profit. Disappointing E&C margins (unexpected Algeria losses) were offset by lower corporate + tax rate (20% vs 28% guidance = +$0.09). HAL (IL/A) oilfield profits (~35% lower than SLB in 3Q) rose 13% sequentially ex-hurricane vs +16% for SLB. SLB LTM oilfield profits (~45% > HAL) rose 16% seq vs +13% for HAL. We continue to prefer SLB's (OP/A) stronger non-N. America franchise at this point in the cycle. Looking through quarterly noise, HAL's oilfield business is performing well, but E&C losses suggest sailing may not be as smooth as hoped given late 2004 restructuring.
Each of the analysts named below hereby certifies that, with respect to each subject company and its securities for which the analyst is responsible in this report, (1) all of the views expressed in this report accurately reflect his or her personal views about the subject companies and securities, and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report: Terry Darling, Jerry Revich.
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Previous Goldman Sachs notes on Halliburton:
HAL (IL/A): Raising estimates + fair value to $72 Goldman Sachs July 25, 2005
Message 21540240
Halliburton (IL/A): Raising estimates + fair value to $58 April 25, 2005
Message 21265275
Halliburton (IL/A): First Take: Strong E&C margins + lower tax rate drive 1Q EPS upside Goldman Sachs April 21, 2005
Message 21255344
HAL (IL/A) - Outlook in tact, but near-term momentum likely stronger for SLB + BHI Goldman-Sachs January 30, 2005
Message 21000615 |
