Baker Hughes Inc. reported second-quarter 2016 adjusted loss from continuing operations of 90 cents a share, substantially wider than the Zacks Consensus Estimate of a loss of 60 cents per share. The quarterly figure was also significantly wider than the year-ago adjusted loss of 14 cents a share.
This was mainly due to job cuts,impairment and restructuring charges related to writedown of assets and contract terminations.
Revenues of $2,408 million came in above the Zacks Consensus Estimate of $2,330 million. Of Baker Hughes' total quarterly revenue, North America, Europe/Africa/Russia/Caspian, Middle East/Asia-Pacific and Latin America accounted for 27.7%, 24.1%, 27% and 9.8%, respectively. The remainder was generated by the Industrial Services segment.
Liquidity
At the end of the second quarter, Baker Hughes had $3,910 million in cash and cash equivalents, while long-term debt was $2,887 million. In the reported quarter, capital expenditures totaled $70 million, which reflects a decrease of $16 million or 19% sequentially, and $188 million or 73% from the second quarter of 2015. The reduction in capital expenditure is attributable to lower activity levels and focus on capital discipline.
Depreciation and amortization expenses were $305 million, down 14% sequentially and 30% year over year. The decline in expenses is primarily attributable to the prior-year impairment and restructuring actions.
Zacks Rank & Stocks to Consider
Currently, Baker Hughes carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are GeoPark Limited (GPRK - Free Report) , Northern Oil and Gas, Inc. (NOG - Free Report) and Rex Energy Corporation . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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Baker Hughes Inc. reported second-quarter 2016 adjusted loss from continuing operations of 90 cents a share, substantially wider than the Zacks Consensus Estimate of a loss of 60 cents per share. The quarterly figure was also significantly wider than the year-ago adjusted loss of 14 cents a share.
This was mainly due to job cuts,impairment and restructuring charges related to writedown of assets and contract terminations.
Revenues of $2,408 million came in above the Zacks Consensus Estimate of $2,330 million. Of Baker Hughes' total quarterly revenue, North America, Europe/Africa/Russia/Caspian, Middle East/Asia-Pacific and Latin America accounted for 27.7%, 24.1%, 27% and 9.8%, respectively. The remainder was generated by the Industrial Services segment.
Liquidity
At the end of the second quarter, Baker Hughes had $3,910 million in cash and cash equivalents, while long-term debt was $2,887 million. In the reported quarter, capital expenditures totaled $70 million, which reflects a decrease of $16 million or 19% sequentially, and $188 million or 73% from the second quarter of 2015. The reduction in capital expenditure is attributable to lower activity levels and focus on capital discipline.
Depreciation and amortization expenses were $305 million, down 14% sequentially and 30% year over year. The decline in expenses is primarily attributable to the prior-year impairment and restructuring actions.
Zacks Rank & Stocks to Consider
Currently, Baker Hughes carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are GeoPark Limited (GPRK - Free Report) , Northern Oil and Gas, Inc. (NOG - Free Report) and Rex Energy Corporation . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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