We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is a Beat in the Offing for Baker Hughes' (BKR) Q2 Earnings?
Read MoreHide Full Article
Baker Hughes Company (BKR - Free Report) is set to report second-quarter 2020 results on Jul 22, before the opening bell.
In the last reported quarter, its earnings per share of 11 cents beat the Zacks Consensus Estimate of 9 cents due to strong performance of the Oilfield Services segment, and higher cost productivity in Turbomachinery & Process Solutions.
The oilfield service player beat the Zacks Consensus Estimate for earnings in two of the prior four quarters and missed on the other two occasions, delivering an earnings surprise of 0.5%, on average. This is depicted in the graph below:
Let’s see how things have shaped up prior to the earnings announcement.
Trend in Estimate Revision
The Zacks Consensus Estimate for second-quarter loss per share has narrowed from 2 cents to 1 cent in the past 30 days. The figure indicates a decrease of 105% from the year-ago quarter.
Further, the Zacks Consensus Estimate for revenues of $4.7 billion suggests a 21.1% decrease from the prior-year quarter.
What the Quantitative Model Suggests
Our proven model predicts an earnings beat for Baker Hughes this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Baker Hughes has an Earnings ESP of +25.00%. This is because the Most Accurate Estimate for the quarter is currently pegged higher than the Zacks Consensus Estimate of a loss of 1 cent per share. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Baker Hughes currently carries a Zacks Rank #3.
Factors Driving the Better-Than-Expected Earnings
Baker Hughes’ earnings depend heavily on exploration and production (‘E&P’) companies’ spending. In the second quarter, the gradual recovery in oil prices led to a rebound in drilling activities across shale plays, thereby boosting E&P spending. As a supplier of technology, solutions and parts to the E&P sector, Baker Hughes’ profits are likely to have increased owing to the bullish sentiment. This might have also boosted the company’s Oilfield Services unit.
While some international E&Ps pulled back spending due to weak oil prices, the degree of decline is likely to have been less than North America. This is because most of these projects are backed by national oil companies and/or integrated majors with long-term horizons. This might have positively impacted Baker Hughes’ profits.
Other Stocks That Warrant a Look
Here are some other firms that you may also want to consider as these too have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
Range Resources Corporation (RRC - Free Report) has an Earnings ESP of +5.69% and a Zacks Rank of 2. It is scheduled to report second-quarter results on Aug 3.
Cimarex Energy Co. has an Earnings ESP of +13.53% and holds a Zacks Rank #2. It is set to report second-quarter results on Aug 5.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Shutterstock
Is a Beat in the Offing for Baker Hughes' (BKR) Q2 Earnings?
Baker Hughes Company (BKR - Free Report) is set to report second-quarter 2020 results on Jul 22, before the opening bell.
In the last reported quarter, its earnings per share of 11 cents beat the Zacks Consensus Estimate of 9 cents due to strong performance of the Oilfield Services segment, and higher cost productivity in Turbomachinery & Process Solutions.
The oilfield service player beat the Zacks Consensus Estimate for earnings in two of the prior four quarters and missed on the other two occasions, delivering an earnings surprise of 0.5%, on average. This is depicted in the graph below:
Baker Hughes Company Price and EPS Surprise
Baker Hughes Company price-eps-surprise | Baker Hughes Company Quote
Let’s see how things have shaped up prior to the earnings announcement.
Trend in Estimate Revision
The Zacks Consensus Estimate for second-quarter loss per share has narrowed from 2 cents to 1 cent in the past 30 days. The figure indicates a decrease of 105% from the year-ago quarter.
Further, the Zacks Consensus Estimate for revenues of $4.7 billion suggests a 21.1% decrease from the prior-year quarter.
What the Quantitative Model Suggests
Our proven model predicts an earnings beat for Baker Hughes this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Baker Hughes has an Earnings ESP of +25.00%. This is because the Most Accurate Estimate for the quarter is currently pegged higher than the Zacks Consensus Estimate of a loss of 1 cent per share. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Baker Hughes currently carries a Zacks Rank #3.
Factors Driving the Better-Than-Expected Earnings
Baker Hughes’ earnings depend heavily on exploration and production (‘E&P’) companies’ spending. In the second quarter, the gradual recovery in oil prices led to a rebound in drilling activities across shale plays, thereby boosting E&P spending. As a supplier of technology, solutions and parts to the E&P sector, Baker Hughes’ profits are likely to have increased owing to the bullish sentiment. This might have also boosted the company’s Oilfield Services unit.
While some international E&Ps pulled back spending due to weak oil prices, the degree of decline is likely to have been less than North America. This is because most of these projects are backed by national oil companies and/or integrated majors with long-term horizons. This might have positively impacted Baker Hughes’ profits.
Other Stocks That Warrant a Look
Here are some other firms that you may also want to consider as these too have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
Enbridge Inc. (ENB - Free Report) has an Earnings ESP of +3.24% and is a Zacks #2 Ranked player. The company is scheduled to release second-quarter results on Jul 29. You can see the complete list of today’s Zacks #1 Rank stocks here.
Range Resources Corporation (RRC - Free Report) has an Earnings ESP of +5.69% and a Zacks Rank of 2. It is scheduled to report second-quarter results on Aug 3.
Cimarex Energy Co. has an Earnings ESP of +13.53% and holds a Zacks Rank #2. It is set to report second-quarter results on Aug 5.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>