Halliburton (HAL) stock tumbled 8.44% in pre-market trading on Tuesday following the release of its first-quarter earnings report, which revealed a significant drop in profit due to a slowdown in North American drilling activity.

The Houston-based oilfield services giant reported 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, posted in the same period last year. The company's adjusted earnings per share came in at $0.60, meeting analyst expectations, while sales of $5.417 billion surpassed the estimated $5.283 billion.

The sharp decline in Halliburton's profits underscores the challenges facing the oil and gas industry, particularly in North America. The slowdown in drilling activity has dampened demand for Halliburton's oilfield services and equipment, directly impacting the company's bottom line. This report may raise concerns among investors about the broader energy sector's outlook and the potential for continued weakness in drilling activity across the region.