Financials Earnings Whisper: Halliburton Company (HAL) and Morgan Stanley (MS)

Earnings Whisper: Halliburton Company (HAL) and Morgan Stanley (MS)

Published By Steve Kessler at October 18, 2016 02:46 pm

Before Wednesday bell opens, Halliburton Company (NYSE:HAL) and Morgan Stanley (NYSE:MS) will announce their respective earnings for the third quarter of fiscal 2016. Our observation suggests both the companies would outdo Street on top and bottom lines. Further details about the Q3 numbers are discussed below.

Halliburton Company

The FactSet consensus expects Halliburton to report loss per share of six cents for 3QFY16. However, our analysis reveal that the company might beat the Street on bottom line with one cent as earningswhispers.com expects a per share loss of 5 cents. In the previous quarter, Halliburton reported a loss of 14 cents per share that accounts for a 57.14% sequential increase in EPS this time. Given a year earlier earnings of 31 cents per share, the company may report 119.35% YoY decline this quarter if it meets the Street’s bottom line estimate.

The Street’s revenue estimate of $3.87 billion for 3QFY16 implies a 30.52% year-on-year decline. Compared to the second quarter, Halliburton revenue is expected to be up 1.04% QoQ. The company announced $5.58 billion revenue a year ago and $3.83 billion revenue in the 2QFY16. Estimize.com expects the oilfield services company to post $3.9 billion revenue, reflecting a top line beat over Street. reported at $3.84 billion. Given that it reported $5.58 billion revenue in 3QFY15, Street expects it to decline 30.52% YoY.

Morgan Stanley

The consensus expects MS to report 64 cents per share for 3QFY16. EPS estimate of 71 cents per share by Earningswhispers.com says the bank would beat the Street on bottom line. The Street estimate calls for a 14.66% sequential decline as it reported 75 cents of EPS in 2QFY16. On a YoY basis, the estimate suggests a 33.33% increase in earnings as Morgan Stanley provided 48 cents EPS in the period last year.

FactSet survey shows that the Street is looking for $8.24 billion revenue this quarter, which indicates a 5.69% YoY increase in sales. Estimize.com has projected a revenue beat over Street with its estimate of $8.31 billion. The $61.43 billion company had $8.9 billion revenue in 2QFY16, and $7.8 billion revenue in 3QFY15.