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.
What's in the Offing for Baker Hughes' (KMI) Q3 Earnings?
Read MoreHide Full Article
Baker Hughes Company (BKR - Free Report) is set to report third-quarter 2023 results on Oct 25, after the closing bell.
In the last reported quarter, the oilfield service provider’s adjusted earnings of 39 cents per share beat the Zacks Consensus Estimate of 32 cents due to higher contributions from both business units.
In the trailing four quarters, Baker Hughes beat the Zacks Consensus Estimate thrice and missed the same once, the earnings surprise being 6.6%, on average. This is depicted in the graph below:
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 third-quarter earnings is pegged at 39 cents per share, indicating an increase of 50% from the year-ago period’s reported number. The bottom line has witnessed no upward and one downward movement in the past 30 days.
The consensus estimate for revenues is pinned at $6.5 billion, indicating a 21.4% improvement from the year-ago quarter’s recorded figure.
Factors to Consider
The West Texas Intermediate crude price was considerably lower in the third quarter of 2023 than that in the corresponding period of 2022. However, the price was still favorable for the exploration and production operations. This is likely to have improved the company’s oilfield service orders 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 third quarter.
The Zacks Consensus Estimate for operating income from the company’s Oilfield Services is pegged at $450 million, indicating an increase from the $330 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 $5.9 billion, suggesting a rise from the $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 -7.69%. This is because the Most Accurate Estimate is pegged at earnings of 36 cents per share and the Zacks Consensus Estimate is pegged at earnings of 39 cents. 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:
Matador is scheduled to release third-quarter earnings on Oct 24. The Zacks Consensus Estimate for MTDR’s earnings is pegged at $1.55 per share, suggesting a decline from the prior-year reported figure.
Hess Corporation (HES - Free Report) presently has an Earnings ESP of +11.44% and a Zacks Rank #2.
Hess is scheduled to release third-quarter earnings on Oct 25. The Zacks Consensus Estimate for HES’ earnings is pegged at $1.30 per share, suggesting a decline from the prior-year reported figure.
Antero Resources Corporation (AR - Free Report) currently has an Earnings ESP of +91.67% and a Zacks Rank #3.
Antero Resources is scheduled to release third-quarter earnings on Oct 25. The Zacks Consensus Estimate for AR’s earnings is pegged at a loss of 6 cents per share, suggesting a significant decline from the prior-year reported figure.
Image: Bigstock
What's in the Offing for Baker Hughes' (KMI) Q3 Earnings?
Baker Hughes Company (BKR - Free Report) is set to report third-quarter 2023 results on Oct 25, after the closing bell.
In the last reported quarter, the oilfield service provider’s adjusted earnings of 39 cents per share beat the Zacks Consensus Estimate of 32 cents due to higher contributions from both business units.
In the trailing four quarters, Baker Hughes beat the Zacks Consensus Estimate thrice and missed the same once, the earnings surprise being 6.6%, 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
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 third-quarter earnings is pegged at 39 cents per share, indicating an increase of 50% from the year-ago period’s reported number. The bottom line has witnessed no upward and one downward movement in the past 30 days.
The consensus estimate for revenues is pinned at $6.5 billion, indicating a 21.4% improvement from the year-ago quarter’s recorded figure.
Factors to Consider
The West Texas Intermediate crude price was considerably lower in the third quarter of 2023 than that in the corresponding period of 2022. However, the price was still favorable for the exploration and production operations. This is likely to have improved the company’s oilfield service orders 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 third quarter.
The Zacks Consensus Estimate for operating income from the company’s Oilfield Services is pegged at $450 million, indicating an increase from the $330 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 $5.9 billion, suggesting a rise from the $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 -7.69%. This is because the Most Accurate Estimate is pegged at earnings of 36 cents per share and the Zacks Consensus Estimate is pegged at earnings of 39 cents. 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:
Matador Resources Company (MTDR - Free Report) has an Earnings ESP of +6.52% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador is scheduled to release third-quarter earnings on Oct 24. The Zacks Consensus Estimate for MTDR’s earnings is pegged at $1.55 per share, suggesting a decline from the prior-year reported figure.
Hess Corporation (HES - Free Report) presently has an Earnings ESP of +11.44% and a Zacks Rank #2.
Hess is scheduled to release third-quarter earnings on Oct 25. The Zacks Consensus Estimate for HES’ earnings is pegged at $1.30 per share, suggesting a decline from the prior-year reported figure.
Antero Resources Corporation (AR - Free Report) currently has an Earnings ESP of +91.67% and a Zacks Rank #3.
Antero Resources is scheduled to release third-quarter earnings on Oct 25. The Zacks Consensus Estimate for AR’s earnings is pegged at a loss of 6 cents per share, suggesting a significant decline from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.