Boston, MA 04/14/2014 (wallstreetpr) – Halliburton Company (NYSE:HAL) provides exploration, development and production services in the energy industry. The company thrives in the pressure pumping business.
The company is facing sluggish demand for its services in the North American market, especially due to an oversupply of pressure pumping solutions, a situation that has resulted in pricing pressure thus limiting revenue from the segment.
The oil field services provider long looked to the U.S. for the majority of its revenue, but demand and pricing issues are gradually turning the company’s attention to the international markets.
Efforts to penetrate strongly into the international market have paid off for the company, and the trend is expected to continue as international exploration and drilling activities increase. Moreover, Halliburton Company (NYSE:HAL) currently enjoys strong business network in the international market, thanks to its superior services and competitive marketing efforts.
Aggressive on both markets
Although Halliburton Company (NYSE:HAL) is beginning to win reliable businesses in the international scene as can be seen in its widely strong fourth quarter performance, the North American operations are still very important for the company. On that note, the company needs to have its eyes on both markets to ensure that its revenue is not impacted when one market is struggling.
Most recent performance
The company earned 93 cents per share in the fourth quarter, topping Wall Street view of 89 cents. Revenue also came in higher than expected at $7.6 billion, against $7.56 billion expected by Wall Street. The revenue jumped 4.8 percent over the comparable quarter a year prior. Analysts expect the company to realize full-year EPS of $3.95.
Proceed with caution
While there is no doubt that going big internationally is having its positive impact on the revenue and earnings performance of Halliburton Company (NYSE:HAL), there seems to be little upside room in the stock price. Having attained one-year jump of almost 55 percent, the stock has covered much of the ground, and its upside potential looks limited.
