Baker Hughes, a GE company reported first-quarter 2019 adjusted earnings of 15 cents per share, which beat the Zacks Consensus Estimate by a penny, backed by higher order volume in the Subsea Production Systems business. Moreover, the bottom line rose from the year-ago quarter’s 9 cents due to increased activities in the Middle East and Sub-Saharan Africa.
Revenues totaled $5,615 million, in line with the Zacks Consensus Estimate. The figure is higher than the year-ago quarter’s $5,399 million, driven by increased volume in Measurement & Sensing, and Pipeline & Process Solutions businesses.
Segmental Performance
Revenues from the Oilfield Services unit amounted to $2,986 million, up 12% from the year-ago quarter’s sales of $2,678 million. Operating income from the business segment came in at $176 million, up from $141 million in first-quarter 2018. The upside was driven by increased activities in the Middle East and Sub-Saharan Africa.
Revenues from the Oilfield Equipment unit totaled $735 million, up 11% from the prior-year quarter’s $664 million. Notably, the segment reported profit of $12 million against a loss of $6 million in the year-ago quarter. The upside can be attributed to a rise in order volume in the Subsea Production Systems business.
Revenues from the Turbomachinery & Process Solutions unit declined to $1,302 million from $1,460 million a year ago. Moreover, segmental income fell to $118 million from $119 million in the first quarter of 2018 owing to lower equipment installations and upgrades.
Revenues from the Digital Solutions segment amounted to $592 million, down 1% from $598 million in the year-ago quarter. Operating profit in the business segment totaled $68 million, down 6% from the year-ago quarter’s $73 million. The segment was affected by lower volumes in Controls and Software businesses, partially offset by higher volumes in Measurement & Sensing and Pipeline & Process Solutions businesses.
Orders
Total orders from all its business segments through first-quarter 2019 were around $5.7 billion, up 9% year over year. Oilfield Equipment, Oilfield Services and Digital Solutions business units were responsible for the upside.
Capex & Balance Sheet
Baker Hughes’ capital expenditure in the first quarter totaled $235 million.
As of Mar 31, 2019, the company had cash and cash equivalents of approximately $3,073 million, as well as a long-term debt of $6,270 million, representing a debt-to-capitalization ratio of 15.2%.
Zacks Rank and Stocks to Consider
Currently, Baker Hughes carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy space are Cactus, Inc. (WHD - Free Report) , Hess Corp. (HES - Free Report) and Chevron Corp. (CVX - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cactus’ earnings growth is projected at 11.8% through 2019.
Hess’ earnings are expected to grow 90.5% through 2019.
Chevron’s earnings will likely grow 3.4% on a year-over-year basis in the second quarter of 2019.
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Baker Hughes, a GE company reported first-quarter 2019 adjusted earnings of 15 cents per share, which beat the Zacks Consensus Estimate by a penny, backed by higher order volume in the Subsea Production Systems business. Moreover, the bottom line rose from the year-ago quarter’s 9 cents due to increased activities in the Middle East and Sub-Saharan Africa.
Revenues totaled $5,615 million, in line with the Zacks Consensus Estimate. The figure is higher than the year-ago quarter’s $5,399 million, driven by increased volume in Measurement & Sensing, and Pipeline & Process Solutions businesses.
Segmental Performance
Revenues from the Oilfield Services unit amounted to $2,986 million, up 12% from the year-ago quarter’s sales of $2,678 million. Operating income from the business segment came in at $176 million, up from $141 million in first-quarter 2018. The upside was driven by increased activities in the Middle East and Sub-Saharan Africa.
Revenues from the Oilfield Equipment unit totaled $735 million, up 11% from the prior-year quarter’s $664 million. Notably, the segment reported profit of $12 million against a loss of $6 million in the year-ago quarter. The upside can be attributed to a rise in order volume in the Subsea Production Systems business.
Revenues from the Turbomachinery & Process Solutions unit declined to $1,302 million from $1,460 million a year ago. Moreover, segmental income fell to $118 million from $119 million in the first quarter of 2018 owing to lower equipment installations and upgrades.
Revenues from the Digital Solutions segment amounted to $592 million, down 1% from $598 million in the year-ago quarter. Operating profit in the business segment totaled $68 million, down 6% from the year-ago quarter’s $73 million. The segment was affected by lower volumes in Controls and Software businesses, partially offset by higher volumes in Measurement & Sensing and Pipeline & Process Solutions businesses.
Orders
Total orders from all its business segments through first-quarter 2019 were around $5.7 billion, up 9% year over year. Oilfield Equipment, Oilfield Services and Digital Solutions business units were responsible for the upside.
Capex & Balance Sheet
Baker Hughes’ capital expenditure in the first quarter totaled $235 million.
As of Mar 31, 2019, the company had cash and cash equivalents of approximately $3,073 million, as well as a long-term debt of $6,270 million, representing a debt-to-capitalization ratio of 15.2%.
Zacks Rank and Stocks to Consider
Currently, Baker Hughes carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy space are Cactus, Inc. (WHD - Free Report) , Hess Corp. (HES - Free Report) and Chevron Corp. (CVX - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cactus’ earnings growth is projected at 11.8% through 2019.
Hess’ earnings are expected to grow 90.5% through 2019.
Chevron’s earnings will likely grow 3.4% on a year-over-year basis in the second quarter of 2019.
Is Your Investment Advisor Fumbling Your Financial Future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”
Click to get it free >>
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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