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What's in the Cards for Baker Hughes This Earnings Season?

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Baker Hughes Company (BKR - Free Report) is set to report third-quarter 2024 results on Oct. 22, after the closing bell.

In the last reported quarter, the oilfield service provider’s adjusted earnings of 57 cents per share beat the Zacks Consensus Estimate of 49 cents, driven by significant contracts in its Oilfield Services & Equipment segment, including major contracts with Petrobras and the State Oil Company of Azerbaijan Republic.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 10.0%. This is depicted in the graph below:

Baker Hughes Company Price and EPS Surprise

Baker Hughes Company Price and EPS Surprise

Baker Hughes Company price-eps-surprise | Baker Hughes Company Quote

Estimate Trend

The Zacks Consensus Estimate for third-quarter earnings per share of 60 cents has witnessed two upward revisions and one downward revision in the past 30 days. The consensus estimate implies an increase of almost 43% from the year-ago reported number.

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $7.2 billion indicates a 9% improvement from the year-ago reported figure.

Factors to Consider for BKR

According to the U.S. Energy Information Administration, the average spot prices for West Texas Intermediate crude at Cushing, OK, were $81.80 per barrel in July, $76.68 per barrel in August and $70.24 per barrel in September. This indicates that the crude pricing environment in the third quarter was highly favorable for exploration and production activities.

Favorable prices of the commodity are likely to have aided exploration and production activities which in turn might have supported demand for the company’s oilfield services. The Zacks Consensus Estimate for BKR’s operating income from the Oilfield Services & Equipment business is pegged at $525.6 million, higher than $465 million reported in the year-ago quarter.

Earnings Whispers

Our proven model doesn’t predict 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. That is not the case here, as you will see below.

Earnings ESP: Baker Hughes has an Earnings ESP of -2.03%. 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 stocks that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

Cheniere Energy, Inc. (LNG - Free Report) currently has an Earnings ESP of +2.27% and a Zacks Rank #2.

Cheniere Energy is scheduled to release third-quarter earnings on Oct. 31. The Zacks Consensus Estimate for LNG’s earnings is pegged at $1.84 per share, suggesting a 22.4% decrease from the prior-year reported figure.

Murphy USA Inc. (MUSA - Free Report) currently has an Earnings ESP of +1.76% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

MUSA is scheduled to release third-quarter earnings on Oct. 30. The Zacks Consensus Estimate for earnings is pegged at $6.69 per share, suggesting a 13% decrease from the prior-year reported figure.

Oceaneering International, Inc. (OII - Free Report) has an Earnings ESP of +2.27% and a Zacks Rank #3.

Oceaneering is scheduled to release third-quarter earnings on Oct. 23. The Zacks Consensus Estimate for earnings is pegged at 44 cents per share, suggesting a 16% improvement from the prior-year reported figure.

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