We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Baker Hughes (BKR) Beats Earnings & Revenue Estimates in Q2
Read MoreHide Full Article
Baker Hughes Company (BKR - Free Report) has reported second-quarter 2023 adjusted earnings of 39 cents per share, beating the Zacks Consensus Estimate of 32 cents. The bottom line improved from the year-ago quarter’s 11 cents.
Total quarterly revenues of $6,315 million surpassed the Zacks Consensus Estimate of $6,230 million. The top line also increased from the year-ago quarter’s $5,047 million.
Strong quarterly results have primarily been driven by higher contributions from the Oilfield Services and Equipment, and Industrial & Energy Technology business units.
Baker Hughes Company Price, Consensus and EPS Surprise
Baker Hughes reorganized its company from four segments to two operating segments. Effective Oct 1, 2022, the two operating segments are Oilfield Services and Equipment, and Industrial & Energy Technology.
Revenues from the Oilfield Services and Equipment unit amounted to $3,877 million, up 20% from the year-ago quarter’s $3,230 million. Our estimate for the company’s revenues from the same unit was pegged at $3,707.7 million.
Baker Hughes’ operating income from the segment was $417 million, up from the $249 million reported in second-quarter 2022, backed by higher volumes.
Revenues from the Industrial & Energy Technology unit amounted to $2,438 million, up 34% from the year-ago quarter’s $1,816 million. Our estimate for the company’s revenues from the same unit was pegged at $2,432.4 million.
Baker Hughes’ operating income from the segment was $311 million, up from the year-ago quarter’s $236 million due to higher volumes and pricing.
Costs and Expenses
Baker Hughes has recorded total costs and expenses of $5,801 million in the second quarter, up from the year-ago quarter’s $5,072 million. The figure is also above our projection of $5,763.7 million.
Orders
Total orders of the company from all business segments in second-quarter 2023 amounted to $7,474 million, up 28% year over year. We expected the figure to be $5,959 million.
The outperformance resulted from higher order intakes from segments like Oilfield Services and Equipment, and Industrial & Energy Technology.
Free Cash Flow
Baker Hughes generated a free cash flow of $623 million in the reported quarter compared with the $147 million reported in the year-ago period. The figure beat our estimate of $227 million.
Capex & Balance Sheet
BKR’s net capital expenditure in the second quarter totaled $235 million.
As of Jun 30, 2023, Baker Hughes had cash and cash equivalents of $2,805 million. At the second-quarter end, the company had a long-term debt of $5,847 million, marking a debt-to-capitalization of 30.3%.
Outlook
For 2023, Baker Hughes expects revenues of $24.8-$26 billion. The company projects revenues of $6.4-$6.6 billion for the third quarter.
Zacks Rank & Stocks to Consider
Baker Hughes currently carries a Zacks Rank #3 (Hold).
Evolution Petroleum is an independent energy company. EPM has a Zacks Style Score of A for Growth.
Evolution Petroleum has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for EPM’s 2023 and 2024 earnings per share is pegged at $1.11 and $1.05, respectively.
One of the leading suppliers of integrated technology solutions, Oceaneering boasts an impressive portfolio of diversified products and services. OII has a Zacks Style Score of A for Momentum and B for Growth.
Oceaneering has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The consensus estimate for OII’s 2023 and 2024 earnings per share is pegged at $1.12 and $1.29, respectively.
Seadrill is a market-leading international driller with strong exposure in key strategic basins like the U.S. Gulf of Mexico, Brazil and Angola.
Seadrill has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The consensus estimate for SDRL’s 2023 and 2024 earnings per share is pegged at $2.93 and $4.01, respectively.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Baker Hughes (BKR) Beats Earnings & Revenue Estimates in Q2
Baker Hughes Company (BKR - Free Report) has reported second-quarter 2023 adjusted earnings of 39 cents per share, beating the Zacks Consensus Estimate of 32 cents. The bottom line improved from the year-ago quarter’s 11 cents.
Total quarterly revenues of $6,315 million surpassed the Zacks Consensus Estimate of $6,230 million. The top line also increased from the year-ago quarter’s $5,047 million.
Strong quarterly results have primarily been driven by higher contributions from the Oilfield Services and Equipment, and Industrial & Energy Technology business units.
Baker Hughes Company Price, Consensus and EPS Surprise
Baker Hughes Company price-consensus-eps-surprise-chart | Baker Hughes Company Quote
Segmental Performance
Baker Hughes reorganized its company from four segments to two operating segments. Effective Oct 1, 2022, the two operating segments are Oilfield Services and Equipment, and Industrial & Energy Technology.
Revenues from the Oilfield Services and Equipment unit amounted to $3,877 million, up 20% from the year-ago quarter’s $3,230 million. Our estimate for the company’s revenues from the same unit was pegged at $3,707.7 million.
Baker Hughes’ operating income from the segment was $417 million, up from the $249 million reported in second-quarter 2022, backed by higher volumes.
Revenues from the Industrial & Energy Technology unit amounted to $2,438 million, up 34% from the year-ago quarter’s $1,816 million. Our estimate for the company’s revenues from the same unit was pegged at $2,432.4 million.
Baker Hughes’ operating income from the segment was $311 million, up from the year-ago quarter’s $236 million due to higher volumes and pricing.
Costs and Expenses
Baker Hughes has recorded total costs and expenses of $5,801 million in the second quarter, up from the year-ago quarter’s $5,072 million. The figure is also above our projection of $5,763.7 million.
Orders
Total orders of the company from all business segments in second-quarter 2023 amounted to $7,474 million, up 28% year over year. We expected the figure to be $5,959 million.
The outperformance resulted from higher order intakes from segments like Oilfield Services and Equipment, and Industrial & Energy Technology.
Free Cash Flow
Baker Hughes generated a free cash flow of $623 million in the reported quarter compared with the $147 million reported in the year-ago period. The figure beat our estimate of $227 million.
Capex & Balance Sheet
BKR’s net capital expenditure in the second quarter totaled $235 million.
As of Jun 30, 2023, Baker Hughes had cash and cash equivalents of $2,805 million. At the second-quarter end, the company had a long-term debt of $5,847 million, marking a debt-to-capitalization of 30.3%.
Outlook
For 2023, Baker Hughes expects revenues of $24.8-$26 billion. The company projects revenues of $6.4-$6.6 billion for the third quarter.
Zacks Rank & Stocks to Consider
Baker Hughes currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the energy space are Evolution Petroleum Corporation (EPM - Free Report) , Oceaneering International, Inc. (OII - Free Report) and Seadrill Limited (SDRL - Free Report) , currently each sporting a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum is an independent energy company. EPM has a Zacks Style Score of A for Growth.
Evolution Petroleum has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for EPM’s 2023 and 2024 earnings per share is pegged at $1.11 and $1.05, respectively.
One of the leading suppliers of integrated technology solutions, Oceaneering boasts an impressive portfolio of diversified products and services. OII has a Zacks Style Score of A for Momentum and B for Growth.
Oceaneering has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The consensus estimate for OII’s 2023 and 2024 earnings per share is pegged at $1.12 and $1.29, respectively.
Seadrill is a market-leading international driller with strong exposure in key strategic basins like the U.S. Gulf of Mexico, Brazil and Angola.
Seadrill has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The consensus estimate for SDRL’s 2023 and 2024 earnings per share is pegged at $2.93 and $4.01, respectively.