Halliburton (HAL) shares tumbled 8.44% in pre-market trading on Tuesday following the release of its disappointing first-quarter earnings report. The oilfield services giant reported a significant drop in profit, primarily attributed to a slowdown in drilling activity across North America.
According to the company's financial results, Halliburton posted a profit of $204 million, or 24 cents per share, for the three months ended March 31. This marks a substantial decline from the $606 million, or 68 cents per share, reported in the same period last year. The sharp decrease in earnings reflects the challenging environment faced by the oil and gas industry, particularly in the North American market.
Despite the earnings setback, Halliburton managed to beat sales expectations. The company reported revenues of $5.417 billion for the quarter, surpassing the estimated $5.283 billion. However, this positive aspect was overshadowed by the overall weakness in North American drilling operations, which has significantly impacted the demand for Halliburton's oilfield services and equipment. As investors digest these mixed results, the pre-market plunge suggests a cautious outlook on the company's near-term prospects in the face of ongoing industry headwinds.
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