Back to top

Image: Bigstock

What's in the Offing for Baker Hughes' (BKR) Q1 Earnings?

Read MoreHide Full Article

Baker Hughes Company (BKR - Free Report)  is set to report first-quarter 2022 results on Apr 20, before the opening bell.

In the last reported quarter, the oilfield service provider reported earnings of 25 cents per share, missing the Zacks Consensus Estimate of 29 cents per share due to a decline in cost productivity in Digital Solutions.

In the trailing four quarters, Baker Hughes beat the Zacks Consensus Estimate for earnings once and missed the same thrice, delivering a negative earnings surprise of 18.3%, on average. 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 announcement.

Estimate Trend

The Zacks Consensus Estimate for first-quarter earnings per share of 19 cents has witnessed no upward and downward movements in the past 30 days. The consensus estimate suggests a year-over-year increase of 58.3%.

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $5 billion indicates a 4.7% rise from the year-ago reported figure.

Factors to Consider

The price of West Texas Intermediate crude touched $100 per barrel in the March-end quarter of 2022. The commodity price has improved significantly from the year-ago quarter. With higher oil prices, shale production looks a lot more attractive.

The favorable crude pricing environment convinced explorers and producers to return to shale plays.In first-quarter 2022, Baker Hughes reported an increase in drilling rigs in the United States. With upstream players returning to shale plays, higher oilfield service activities are expected to have aided Baker Hughes’ bottom line.

However, higher oil price causes project delays as it can drive costs for oil drillers, resulting in a downfall for oilfield services. This is likely to have hurt the company’s operations.

Earnings Whispers

Our proven model does not indicate 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 -2.37%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Baker Hughes currently carries a Zacks Rank #3.

Stocks That Warrant a Look

Here are some companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Matador Resources Company (MTDR - Free Report) has an Earnings ESP of +2.75% and is a Zacks #1 Ranked player at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Matador is scheduled to release the first-quarter results on Apr 26. The Zacks Consensus Estimate for MTDR’s quarterly earnings is pegged at $1.97 per share, suggesting an increase of 177.5% from the prior-year reported figure.

Range Resources Corporation (RRC - Free Report) has an Earnings ESP of +1.82% and is a Zacks #3 Ranked player at present.

Range Resources is scheduled to release the first-quarter results on Apr 26. The Zacks Consensus Estimate for RRC’s quarterly earnings is pegged at $1.11 per share, suggesting an increase of 270% from the prior-year reported figure.

PBF Energy (PBF - Free Report) has an Earnings ESP of +35.92% and it flaunts a Zacks Rank #1 at present.

PBF Energy is scheduled to release its first-quarter earnings on Apr 28. The Zacks Consensus Estimate for PBF’s earnings is pegged at 21 cents per share, suggesting a massive increase from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in