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What's in the Offing for Baker Hughes' (BKR) Q2 Earnings?
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Baker Hughes Company (BKR - Free Report) is set to report second-quarter 2022 results on Jul 20, before the opening bell.
In the last reported quarter, the oilfield service provider reported earnings of 15 cents per share, missing the Zacks Consensus Estimate of 19 cents per share due to a decline in cost productivity and inflation pressures in Digital Solutions.
In each of the trailing four quarters, Baker Hughes missed the Zacks Consensus Estimate, the negative earnings surprise being 25.8%, on average. This is depicted in the graph below:
The Zacks Consensus Estimate for second-quarter earnings per share of 22 cents has witnessed no upward movement in the past 30 days but saw five downward revisions. The consensus estimate suggests an increase of 120% from the year-ago reported number.
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $5.4 billion indicates a 4.5% rise from the year-ago reported figure.
Factors to Consider
The pricing scenario of West Texas Intermediate (WTI) crude was considerably higher in the second quarter of this year compared to the year-ago period. Per data from the U.S. Energy Information Administration, the monthly WTI crude spot prices for April, May and June were $101.78 per barrel, $109.55 per barrel and $114.84 per barrel, respectively. The commodity prices were higher than last year’s prices of $61.72 per barrel, $65.17 per barrel and $71.38 per barrel, respectively. The significant crude price improvement was primarily supported by the invasion of Ukraine by Russia.
High oil price was favorable for exploration and production operations in the June quarter. The count of rigs in oil resources was considerably year-over-year higher in the second quarter, confirming heightened upstream activities. With higher exploration operations, demand for oilfield services was promising since oilfield service firms help upstream companies efficiently set up oil wells. Thus, the higher oil price is likely to have aided Baker Hughes’ oilfield service business in the second quarter.
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. But this is not the case here.
Earnings ESP: Baker Hughes has an Earnings ESP of -9.10%. 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 to Consider
Here are some firms that you may want to consider as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
Schlumberger is scheduled to release second-quarter results on Jul 22. The Zacks Consensus Estimate for SLB’s earnings is pegged at 40 cents per share, suggesting an increase of 33.3% from the prior-year reported figure.
BP plc (BP - Free Report) has an Earnings ESP of +8.64% and a Zacks Rank of 1.
BP is scheduled to report second-quarter results on Aug 2. The Zacks Consensus Estimate for BP’s earnings is pegged at $2.00 per share, suggesting a significant increase from the prior-year reported figure.
Valero Energy Corporation (VLO - Free Report) has an Earnings ESP of +9.76% and a Zacks Rank #1.
Valero Energy is scheduled to release second-quarter earnings on Jul 28. The Zacks Consensus Estimate for Valero Energy’s earnings is pegged at $8.38 per share, suggesting a massive increase from the prior-year reported figure.
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What's in the Offing for Baker Hughes' (BKR) Q2 Earnings?
Baker Hughes Company (BKR - Free Report) is set to report second-quarter 2022 results on Jul 20, before the opening bell.
In the last reported quarter, the oilfield service provider reported earnings of 15 cents per share, missing the Zacks Consensus Estimate of 19 cents per share due to a decline in cost productivity and inflation pressures in Digital Solutions.
In each of the trailing four quarters, Baker Hughes missed the Zacks Consensus Estimate, the negative earnings surprise being 25.8%, 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
Estimate Trend
The Zacks Consensus Estimate for second-quarter earnings per share of 22 cents has witnessed no upward movement in the past 30 days but saw five downward revisions. The consensus estimate suggests an increase of 120% from the year-ago reported number.
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $5.4 billion indicates a 4.5% rise from the year-ago reported figure.
Factors to Consider
The pricing scenario of West Texas Intermediate (WTI) crude was considerably higher in the second quarter of this year compared to the year-ago period. Per data from the U.S. Energy Information Administration, the monthly WTI crude spot prices for April, May and June were $101.78 per barrel, $109.55 per barrel and $114.84 per barrel, respectively. The commodity prices were higher than last year’s prices of $61.72 per barrel, $65.17 per barrel and $71.38 per barrel, respectively. The significant crude price improvement was primarily supported by the invasion of Ukraine by Russia.
High oil price was favorable for exploration and production operations in the June quarter. The count of rigs in oil resources was considerably year-over-year higher in the second quarter, confirming heightened upstream activities. With higher exploration operations, demand for oilfield services was promising since oilfield service firms help upstream companies efficiently set up oil wells. Thus, the higher oil price is likely to have aided Baker Hughes’ oilfield service business in the second quarter.
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. But this is not the case here.
Earnings ESP: Baker Hughes has an Earnings ESP of -9.10%. 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 to Consider
Here are some firms that you may want to consider as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
Schlumberger Limited (SLB - Free Report) has an Earnings ESP of +2.10% and is a Zacks #2 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.
Schlumberger is scheduled to release second-quarter results on Jul 22. The Zacks Consensus Estimate for SLB’s earnings is pegged at 40 cents per share, suggesting an increase of 33.3% from the prior-year reported figure.
BP plc (BP - Free Report) has an Earnings ESP of +8.64% and a Zacks Rank of 1.
BP is scheduled to report second-quarter results on Aug 2. The Zacks Consensus Estimate for BP’s earnings is pegged at $2.00 per share, suggesting a significant increase from the prior-year reported figure.
Valero Energy Corporation (VLO - Free Report) has an Earnings ESP of +9.76% and a Zacks Rank #1.
Valero Energy is scheduled to release second-quarter earnings on Jul 28. The Zacks Consensus Estimate for Valero Energy’s earnings is pegged at $8.38 per share, suggesting a massive increase from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.