Analysts Expect Halliburton Company (NYSE:HAL) To Report Low Quarterly Earnings

Due to the decline in oil prices for the past couple of months, the expected earnings of the oil company are estimated to be lower than before.

Halliburton Company is all set to report its first quarterly earnings on Monday, 20th April 2015 and analysts have made different estimations as to what the oil field services company will be announcing for the first financial quarter of 2015. It cannot be ignored that the company has faced one of the most challenging times in stock market for the past three months as the oil prices have been consistently witnessing a dip in the industry which has adversely affected the oil digging companies.

Furthermore, capital expenditures have been cut off by oil companies on an average in order to save their firms from getting much affected by the declining oil prices. Analysts believe that Halliburton will be announcing an earnings report which will be hugely affected by the low prices of oil that have been faced by the industry for the past couple of months. The decrease in the cost of services, as well as rig count, has resulted in the estimation of lower sales report in the upcoming report announcement. The oil digging company has also been depending on a massive scale on the North American market which has become one of the reasons of the rig count declination.

Even though Halliburton has been relying too much on the North American region and has received discouraging sales from that part of the country, analysts believe that as long as the oil and gas firm receives a positive report from Asia and Middle East then all will work out for the company.

The impact of the lowering oil prices did not affect Halliburton for a good 6 months and the effect started to get prominent by the end of the last quarter of 2014 which was when the customers began to fix a new capex for the upcoming year. The upcoming quarter report will make it clear how the cut off on the expenditure will be making an impact on the sales of the oil company.

The expected revenue to be reported by Halliburton on Monday has come around to be $6.89 billion which means the company will be facing a loss by 21.5% as compared to the previous quarter. As for the yearly standard, a decrease of 6.3% has been estimated for the equity firms. These predictions are expected to be quite true as the company has hardly ever missed estimations if the previous five to four financial quarters are taken into consideration.

As for the earnings per share, the predicted price has come around at $0.41 while whisper numbers are of another opinion and they believe the EPS will be $.51.