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Is a Beat in the Offing for Baker Hughes' (BKR) Q1 Earnings?

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Baker Hughes Company (BKR - Free Report) is set to report first-quarter 2021 results on Apr 21, before the opening bell.

In the last reported quarter, the company’s loss of 7 cents per share missed the Zacks Consensus Estimate of earnings of 16 cents. This was owing to lower profits from the company’s Oilfield Services and Digital Solutions units.

Notably, the oilfield service provider has an average negative earnings surprise of 130.4% for the past four reported quarters.  This is depicted in the graph below:

Baker Hughes Company Price and EPS Surprise

 

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 upcoming earnings announcement.

Trend in Estimate Revision

The Zacks Consensus Estimate for first-quarter earnings per share of 11 cents has seen one upward revision and one downward movement in the past 30 days. The figure indicates the same bottom line as was reported a year ago.

Further, the Zacks Consensus Estimate for revenues of $4.8 billion suggests an 11.6% decline 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 +3.97%. 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

In the first quarter of this year, the price of West Texas Intermediate (WTI) crude improved nearly 21.9%, thanks to the rolling out of coronavirus vaccines, which brightened up the outlook of global fuel demand. The rise in oil price provided incentives to explorers and producers to return to shale plays.

Since oilfield service providers assist upstream players to efficiently drill oil and gas wells, increased exploration and production activities are likely to have boosted demand for products and services that are being offered by Baker Hughes.

Other Stocks That Warrant a Look

Here are some other firms that you may want to consider as these too have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Diamondback Energy, Inc. (FANG - Free Report) has an Earnings ESP of +1.26% and is a Zacks #1 Ranked player. The company is scheduled to release first-quarter results on May 3. You can see the complete list of today’s Zacks #1 Rank stocks here

EOG Resources, Inc. (EOG - Free Report) has an Earnings ESP of +14.8% and a Zacks Rank of 1. It is scheduled to report first-quarter results on May 6.

BP plc (BP - Free Report) has an Earnings ESP of +5.26% and a Zacks Rank #3. The firm is scheduled to release first-quarter earnings on Apr 27.

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