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Baker Hughes (BKR) Q3 Earnings Beat Estimates, Revenues Miss
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Baker Hughes Company (BKR - Free Report) has reported third-quarter 2022 adjusted earnings of 26 cents per share, beating the Zacks Consensus Estimate by a penny. The bottom line improved from the year-ago quarter’s earnings of 16 cents per share.
Total quarterly revenues of $5,369 million missed the Zacks Consensus Estimate of $5,447 million. However, the top line increased from the year-ago quarter’s $5,093 million.
The strong quarterly earnings were primarily driven by higher contributions from the Oilfield Services business unit.
Baker Hughes Company Price, Consensus and EPS Surprise
Revenues from the Oilfield Services unit amounted to $2,842 million, up 17% from the year-ago quarter’s $2,419 million. Baker Hughes’ operating income from the segment was $330 million, up from $190 million reported in third-quarter 2021, backed by higher volumes and prices.
Revenues of Baker Hughes from the Oilfield Equipment unit totaled $561 million, down 7% from the prior-year quarter’s $603 million. The segment was affected by a decline in volumes in Baker Hughes’ Subsea Productions Systems and the removal of Subsea Drilling Services. Increased volumes in Flexibles, Services and Surface Pressure Control partially offset the negatives. The segment has reported a loss of $6 million, whereas it reported a profit of $14 million in third-quarter 2021.
Revenues of Baker Hughes from the Turbomachinery & Process Solutions unit declined to $1,438 million from $1,562 million a year ago due to a dip in equipment and project volumes. The segmental income of Baker Hughes decreased to $262 million from $278 million in the third quarter of 2021, owing to lower service revenues.
Revenues of Baker Hughes from the Digital Solutions segment amounted to $528 million, up from $510 million in the year-ago quarter due to higher volume across all product lines. The operating profit of Baker Hughes in the segment totaled $20 million, down 22% from the year-ago quarter’s $26 million. The segment was affected by a decline in cost productivity and inflation pressures.
Costs and Expenses
Baker Hughes recorded total costs and expenses of $5,100 million in the third quarter, up from the year-ago quarter’s $4,715 million.
Orders
Total orders of the company from all business segments in third-quarter 2022 amounted to $6,063 million, up 13% year over year due to higher order intakes from segments like Turbomachinery & Process Solutions, Oilfield Equipment, Oilfield Services, and Digital Solutions.
Free Cash Flow
Baker Hughes generated a free cash flow of $417 million in the reported quarter compared with $305 million in the year-ago period.
Capex & Balance Sheet
Baker Hughes’ net capital expenditure in the third quarter totaled $180 million.
As of Sept 30, 2022, Baker Hughes had cash and cash equivalents of $2,851 million. At the third-quarter end, the company had a long-term debt of $6,612 million, marking a debt-to-capitalization of 31.7%.
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Baker Hughes continues to invest in the energy transition and industrial initiatives, and expects to return 60-80% of free cash flow to shareholders.
Zacks Rank & Stocks to Consider
Baker Hughes currently carries a Zacks Rank #3 (Hold).
Equinor ASA (EQNR - Free Report) is one of the premier integrated energy companies in the world. For 2022, EQNR announced the increase of the share buyback program of up to $6 billion from the prior stated $5 billion.
Equinor is scheduled to report third-quarter results on Oct 28. The Zacks Consensus Estimate for EQNR’s earnings is pegged at $1.78 per share, suggesting a significant increase from the prior-year reported figure.
Exxon Mobil Corporation (XOM - Free Report) is one of the leading integrated energy companies in the world. At the end of second-quarter 2022, XOM’s total cash and cash equivalents were $18.9 billion, and long-term debt was $39.5 billion. The firm has significantly lower debt exposure than other integrated majors.
ExxonMobil is scheduled to release third-quarter results on Oct 28. The Zacks Consensus Estimate for XOM’s earnings is pegged at $3.59 per share, suggesting a massive improvement from the prior-year reported figure.
Murphy USA Inc. (MUSA - Free Report) is a leading independent retailer of motor fuel and convenience merchandise in the United States. MUSA remains committed to returning excess cash to its shareholders through continued share buyback programs. The fuel retailer approved a repurchase authorization of up to $1 billion, which will commence once the existing $500-million authorization expires and be completed by Dec 31, 2026.
Murphy USA is scheduled to release third-quarter earnings on Oct 26. The Zacks Consensus Estimate for MUSA’s earnings is pegged at $7.82 per share, suggesting a massive increase from the prior-year reported figure.
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Baker Hughes (BKR) Q3 Earnings Beat Estimates, Revenues Miss
Baker Hughes Company (BKR - Free Report) has reported third-quarter 2022 adjusted earnings of 26 cents per share, beating the Zacks Consensus Estimate by a penny. The bottom line improved from the year-ago quarter’s earnings of 16 cents per share.
Total quarterly revenues of $5,369 million missed the Zacks Consensus Estimate of $5,447 million. However, the top line increased from the year-ago quarter’s $5,093 million.
The strong quarterly earnings were primarily driven by higher contributions from the Oilfield Services business unit.
Baker Hughes Company Price, Consensus and EPS Surprise
Baker Hughes Company price-consensus-eps-surprise-chart | Baker Hughes Company Quote
Segmental Performance
Revenues from the Oilfield Services unit amounted to $2,842 million, up 17% from the year-ago quarter’s $2,419 million. Baker Hughes’ operating income from the segment was $330 million, up from $190 million reported in third-quarter 2021, backed by higher volumes and prices.
Revenues of Baker Hughes from the Oilfield Equipment unit totaled $561 million, down 7% from the prior-year quarter’s $603 million. The segment was affected by a decline in volumes in Baker Hughes’ Subsea Productions Systems and the removal of Subsea Drilling Services. Increased volumes in Flexibles, Services and Surface Pressure Control partially offset the negatives. The segment has reported a loss of $6 million, whereas it reported a profit of $14 million in third-quarter 2021.
Revenues of Baker Hughes from the Turbomachinery & Process Solutions unit declined to $1,438 million from $1,562 million a year ago due to a dip in equipment and project volumes. The segmental income of Baker Hughes decreased to $262 million from $278 million in the third quarter of 2021, owing to lower service revenues.
Revenues of Baker Hughes from the Digital Solutions segment amounted to $528 million, up from $510 million in the year-ago quarter due to higher volume across all product lines. The operating profit of Baker Hughes in the segment totaled $20 million, down 22% from the year-ago quarter’s $26 million. The segment was affected by a decline in cost productivity and inflation pressures.
Costs and Expenses
Baker Hughes recorded total costs and expenses of $5,100 million in the third quarter, up from the year-ago quarter’s $4,715 million.
Orders
Total orders of the company from all business segments in third-quarter 2022 amounted to $6,063 million, up 13% year over year due to higher order intakes from segments like Turbomachinery & Process Solutions, Oilfield Equipment, Oilfield Services, and Digital Solutions.
Free Cash Flow
Baker Hughes generated a free cash flow of $417 million in the reported quarter compared with $305 million in the year-ago period.
Capex & Balance Sheet
Baker Hughes’ net capital expenditure in the third quarter totaled $180 million.
As of Sept 30, 2022, Baker Hughes had cash and cash equivalents of $2,851 million. At the third-quarter end, the company had a long-term debt of $6,612 million, marking a debt-to-capitalization of 31.7%.
View
Baker Hughes continues to invest in the energy transition and industrial initiatives, and expects to return 60-80% of free cash flow to shareholders.
Zacks Rank & Stocks to Consider
Baker Hughes currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Equinor ASA (EQNR - Free Report) is one of the premier integrated energy companies in the world. For 2022, EQNR announced the increase of the share buyback program of up to $6 billion from the prior stated $5 billion.
Equinor is scheduled to report third-quarter results on Oct 28. The Zacks Consensus Estimate for EQNR’s earnings is pegged at $1.78 per share, suggesting a significant increase from the prior-year reported figure.
Exxon Mobil Corporation (XOM - Free Report) is one of the leading integrated energy companies in the world. At the end of second-quarter 2022, XOM’s total cash and cash equivalents were $18.9 billion, and long-term debt was $39.5 billion. The firm has significantly lower debt exposure than other integrated majors.
ExxonMobil is scheduled to release third-quarter results on Oct 28. The Zacks Consensus Estimate for XOM’s earnings is pegged at $3.59 per share, suggesting a massive improvement from the prior-year reported figure.
Murphy USA Inc. (MUSA - Free Report) is a leading independent retailer of motor fuel and convenience merchandise in the United States. MUSA remains committed to returning excess cash to its shareholders through continued share buyback programs. The fuel retailer approved a repurchase authorization of up to $1 billion, which will commence once the existing $500-million authorization expires and be completed by Dec 31, 2026.
Murphy USA is scheduled to release third-quarter earnings on Oct 26. The Zacks Consensus Estimate for MUSA’s earnings is pegged at $7.82 per share, suggesting a massive increase from the prior-year reported figure.