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Baker Hughes (BKR) Q1 Earnings and Revenues Beat Estimates
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Baker Hughes Company (BKR - Free Report) reported first-quarter 2024 adjusted earnings of 43 cents per share, which beat the Zacks Consensus Estimate of 40 cents. The bottom line also improved from the year-ago quarter’s level of 28 cents.
Total quarterly revenues of $6,418 million beat the Zacks Consensus Estimate of $6,341 million. The top line also increased from the year-ago quarter’s level of $5,716 million.
Strong quarterly results were primarily driven by significant contracts in the Oilfield Services and Equipment business unit. Additionally, in the Industrial and Energy Technology segment, Baker Hughes won major awards for gas technology projects in Saudi Arabia and Canada.
Baker Hughes Company Price, Consensus and EPS Surprise
BKR was reorganized from four to two operating segments — Oilfield Services and Equipment, and Industrial & Energy Technology. The segments became operational from Oct 1, 2022.
Revenues from the Oilfield Services and Equipment unit amounted to $3,783 million, up 6% from the year-ago quarter’s figure of $3,577 million. Our estimate for revenues from the same unit was pegged at $3,857 million.
Operating income from the segment totaled $422 million, up 14% from $371 million reported in first-quarter 2023, backed by higher volumes.
Revenues from the Industrial & Energy Technology unit amounted to $2,634 million, up 23% from the year-ago quarter’s level of $2,138 million. Our estimate for revenues from the same unit was pegged at $2,451 million.
Operating income from the segment totaled $330 million, up 37% from the year-ago quarter’s level of $241 million, due to higher volumes and pricing.
Costs and Expenses
Baker Hughes recorded total costs and expenses of $5,765 million in the first quarter, up from the year-ago quarter’s figure of $5,278 million. Our projection for the same was pinned at $5,779 million.
Orders
Orders from all business segments amounted to $6,542 million, down 14% year over year. We expected the figure to be $7,576.6 million.
The underperformance resulted from lower order intakes from Oilfield Services and Equipment, Subsea & Surface Pressure Systemsand a significant drop in Gas Technology Equipment orders.
Free Cash Flow
Baker Hughes generated a free cash flow of $502 million in the reported quarter compared with $197 million in the year-ago period.
Capex & Balance Sheet
BKR’s net capital expenditure in the first quarter was $282 million.
As of Mar 31, 2024, it had cash and cash equivalents of $2,717 million. The company had a long-term debt of $5,859 million at the end of the reported quarter, marking a debt-to-capitalization of 27.5%.
Zacks Rank & Stocks to Consider
Baker Hughes currently carries a Zacks Rank #3 (Hold).
Murphy USA is a leading independent retailer of motor fuel and convenience merchandise in the United States.
The Zacks Consensus Estimate for MUSA’s 2024 EPS is pegged at $26.40. The company has a Zacks Style Score of B for Growth and B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
SM Energy Company is an independent oil and gas company engaged in the exploration, exploitation, development, acquisition, and production of oil and gas in North America. SM currently has a Value Score of B.
The Zacks Consensus Estimate for SM’s 2024 and 2025 EPS is pegged at $6.15 and $6.73, respectively. The stock has witnessed upward earnings estimate revisions for 2025 in the past seven days.
Global Partners is a leading operator of gasoline stations and convenience stores. Over the past 60 days, GLP has witnessed upward earnings estimate revisions for 2024 and 2025.
The Zacks Consensus Estimate for Global Partners’ 2024 and 2025 EPS is pegged at $3.90 and $4.47, respectively. GLP currently has a Zacks Style Score of A for Value.
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Baker Hughes (BKR) Q1 Earnings and Revenues Beat Estimates
Baker Hughes Company (BKR - Free Report) reported first-quarter 2024 adjusted earnings of 43 cents per share, which beat the Zacks Consensus Estimate of 40 cents. The bottom line also improved from the year-ago quarter’s level of 28 cents.
Total quarterly revenues of $6,418 million beat the Zacks Consensus Estimate of $6,341 million. The top line also increased from the year-ago quarter’s level of $5,716 million.
Strong quarterly results were primarily driven by significant contracts in the Oilfield Services and Equipment business unit. Additionally, in the Industrial and Energy Technology segment, Baker Hughes won major awards for gas technology projects in Saudi Arabia and Canada.
Baker Hughes Company Price, Consensus and EPS Surprise
Baker Hughes Company price-consensus-eps-surprise-chart | Baker Hughes Company Quote
Segmental Performance
BKR was reorganized from four to two operating segments — Oilfield Services and Equipment, and Industrial & Energy Technology. The segments became operational from Oct 1, 2022.
Revenues from the Oilfield Services and Equipment unit amounted to $3,783 million, up 6% from the year-ago quarter’s figure of $3,577 million. Our estimate for revenues from the same unit was pegged at $3,857 million.
Operating income from the segment totaled $422 million, up 14% from $371 million reported in first-quarter 2023, backed by higher volumes.
Revenues from the Industrial & Energy Technology unit amounted to $2,634 million, up 23% from the year-ago quarter’s level of $2,138 million. Our estimate for revenues from the same unit was pegged at $2,451 million.
Operating income from the segment totaled $330 million, up 37% from the year-ago quarter’s level of $241 million, due to higher volumes and pricing.
Costs and Expenses
Baker Hughes recorded total costs and expenses of $5,765 million in the first quarter, up from the year-ago quarter’s figure of $5,278 million. Our projection for the same was pinned at $5,779 million.
Orders
Orders from all business segments amounted to $6,542 million, down 14% year over year. We expected the figure to be $7,576.6 million.
The underperformance resulted from lower order intakes from Oilfield Services and Equipment, Subsea & Surface Pressure Systemsand a significant drop in Gas Technology Equipment orders.
Free Cash Flow
Baker Hughes generated a free cash flow of $502 million in the reported quarter compared with $197 million in the year-ago period.
Capex & Balance Sheet
BKR’s net capital expenditure in the first quarter was $282 million.
As of Mar 31, 2024, it had cash and cash equivalents of $2,717 million. The company had a long-term debt of $5,859 million at the end of the reported quarter, marking a debt-to-capitalization of 27.5%.
Zacks Rank & Stocks to Consider
Baker Hughes currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked companies like Murphy USA Inc. (MUSA - Free Report) , SM Energy Company (SM - Free Report) and Global Partners (GLP - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA is a leading independent retailer of motor fuel and convenience merchandise in the United States.
The Zacks Consensus Estimate for MUSA’s 2024 EPS is pegged at $26.40. The company has a Zacks Style Score of B for Growth and B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
SM Energy Company is an independent oil and gas company engaged in the exploration, exploitation, development, acquisition, and production of oil and gas in North America. SM currently has a Value Score of B.
The Zacks Consensus Estimate for SM’s 2024 and 2025 EPS is pegged at $6.15 and $6.73, respectively. The stock has witnessed upward earnings estimate revisions for 2025 in the past seven days.
Global Partners is a leading operator of gasoline stations and convenience stores. Over the past 60 days, GLP has witnessed upward earnings estimate revisions for 2024 and 2025.
The Zacks Consensus Estimate for Global Partners’ 2024 and 2025 EPS is pegged at $3.90 and $4.47, respectively. GLP currently has a Zacks Style Score of A for Value.