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Baker Hughes (BKR) to Report Q2 Earnings: What's in Store?
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Baker Hughes Company (BKR - Free Report) is set to report second-quarter 2023 results on Jul 19, before the opening bell.
In the last reported quarter, the oilfield service provider’s adjusted earnings of 28 cents per share beat the Zacks Consensus Estimate of 26 cents due to higher contributions from the Oilfield Services and Equipment business unit. The positives were partially offset by higher costs and expenses.
In the trailing four quarters, Baker Hughes beat the Zacks Consensus Estimate twice and missed the same twice, the negative earnings surprise being 11.41%, on average. This is depicted in the graph below:
Baker Hughes Company Price, Consensus and EPS Surprise
Let’s delve into the factors that are likely to have influenced the oilfield service firm’s performance in the to-be-reported quarter.
Estimate Trend
The Zacks Consensus Estimate for second-quarter earnings is pegged at 33 cents per share, indicating an increase of 200% from the year-ago period’s reported number. The bottom line has witnessed no upward and downward movement in the past 30 days.
The consensus estimate for revenues is pinned at $6.2 billion, indicating a 23.5% improvement from the year-ago quarter’s recorded figure.
Factors to Consider
The West Texas Intermediate crude price was considerably lower in the second quarter of 2023 than that in the corresponding period of 2022. However, the price was still favorable for the exploration and production operations. This, in turn, is likely to have improved oilfield service orders for the firm, since drilling activities were higher in the to-be-reported quarter.
With higher exploration operations, the demand for oilfield services was quite promising. This was because oilfield service firms helped upstream companies with efficient oil wells set up. Thus, the higher oilfield service demand is likely to have aided Baker Hughes’ oilfield service business in the second quarter.
The Zacks Consensus Estimate for operating income from the company’s Oilfield Services is pegged at $401 million, indicating a massive increase from the $261 million reported in the comparable period of 2022.
However, the increase in Baker Hughes’ expenses is expected to have dented its bottom line. Our estimate for the company’s total costs and expenses is pegged at $5.8 billion, up from $5.1 billion reported in the prior-year 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, which is not the case here.
Earnings ESP: Baker Hughes has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company 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 this reporting cycle:
Pembina is scheduled to release second-quarter earnings on Aug 3. The Zacks Consensus Estimate for PBA’s earnings is pegged at 45 cents per share, indicating a decline from the prior-year quarter’s reported figure.
Southwestern Energy Company (SWN - Free Report) has an Earnings ESP of +15.45% and a Zacks #3 at present.
Southwestern is scheduled to release second-quarter results on Aug 3. The Zacks Consensus Estimate for SWN’s earnings is pegged at 9 cents per share, implying a decline from the prior-year period’s reported number.
Cactus, Inc. (WHD - Free Report) has an Earnings ESP of +4.41% and a Zacks #3 at present.
Cactus is scheduled to release second-quarter results on Aug 7. The Zacks Consensus Estimate for WHD’s earnings is pegged at 74 cents per share, indicating an improvement from the year-ago quarter’s reported figure.
Image: Bigstock
Baker Hughes (BKR) to Report Q2 Earnings: What's in Store?
Baker Hughes Company (BKR - Free Report) is set to report second-quarter 2023 results on Jul 19, before the opening bell.
In the last reported quarter, the oilfield service provider’s adjusted earnings of 28 cents per share beat the Zacks Consensus Estimate of 26 cents due to higher contributions from the Oilfield Services and Equipment business unit. The positives were partially offset by higher costs and expenses.
In the trailing four quarters, Baker Hughes beat the Zacks Consensus Estimate twice and missed the same twice, the negative earnings surprise being 11.41%, on average. This is depicted in the graph below:
Baker Hughes Company Price, Consensus and EPS Surprise
Baker Hughes Company price-consensus-eps-surprise-chart | Baker Hughes Company Quote
Let’s delve into the factors that are likely to have influenced the oilfield service firm’s performance in the to-be-reported quarter.
Estimate Trend
The Zacks Consensus Estimate for second-quarter earnings is pegged at 33 cents per share, indicating an increase of 200% from the year-ago period’s reported number. The bottom line has witnessed no upward and downward movement in the past 30 days.
The consensus estimate for revenues is pinned at $6.2 billion, indicating a 23.5% improvement from the year-ago quarter’s recorded figure.
Factors to Consider
The West Texas Intermediate crude price was considerably lower in the second quarter of 2023 than that in the corresponding period of 2022. However, the price was still favorable for the exploration and production operations. This, in turn, is likely to have improved oilfield service orders for the firm, since drilling activities were higher in the to-be-reported quarter.
With higher exploration operations, the demand for oilfield services was quite promising. This was because oilfield service firms helped upstream companies with efficient oil wells set up. Thus, the higher oilfield service demand is likely to have aided Baker Hughes’ oilfield service business in the second quarter.
The Zacks Consensus Estimate for operating income from the company’s Oilfield Services is pegged at $401 million, indicating a massive increase from the $261 million reported in the comparable period of 2022.
However, the increase in Baker Hughes’ expenses is expected to have dented its bottom line. Our estimate for the company’s total costs and expenses is pegged at $5.8 billion, up from $5.1 billion reported in the prior-year 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, which is not the case here.
Earnings ESP: Baker Hughes has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company 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 this reporting cycle:
Pembina Pipeline Corporation (PBA - Free Report) currently has an Earnings ESP of +4.28% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pembina is scheduled to release second-quarter earnings on Aug 3. The Zacks Consensus Estimate for PBA’s earnings is pegged at 45 cents per share, indicating a decline from the prior-year quarter’s reported figure.
Southwestern Energy Company (SWN - Free Report) has an Earnings ESP of +15.45% and a Zacks #3 at present.
Southwestern is scheduled to release second-quarter results on Aug 3. The Zacks Consensus Estimate for SWN’s earnings is pegged at 9 cents per share, implying a decline from the prior-year period’s reported number.
Cactus, Inc. (WHD - Free Report) has an Earnings ESP of +4.41% and a Zacks #3 at present.
Cactus is scheduled to release second-quarter results on Aug 7. The Zacks Consensus Estimate for WHD’s earnings is pegged at 74 cents per share, indicating an improvement from the year-ago quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.