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Baker Hughes, a GE company, reported third-quarter 2018 adjusted earnings of 19 cents per share, which missed the Zacks Consensus Estimate of 21 cents. The downside was caused by a drop in volumes of contractual activities. This was partially offset by increased pressure pumping activities and contributions from Inspection Technologies.
Revenues amounted to $5,665 million, which missed the Zacks Consensus Estimate of $5,891 million. Nevertheless, the figure improved from the year-ago quarter’s tally of $5,301 million.
Baker Hughes, a GE company Price, Consensus and EPS Surprise
Revenues in the Oilfield Services unit amounted to $2,993 million, up 12.5% from the year-ago quarter’s sales of $2,661 million.
Operating income in the business segment came in at $231 million, up from $88 million in third-quarter 2017.
Higher activities related to pressure pumping, artificial lift and completions & drilling primarily aided the segment.
Revenues in the Oilfield Equipment unit totaled $631 million, up 3% from the prior-year quarter’s tally of $613 million.
Moreover, the segment reported profit of $6 million, against a loss of $41 million in the July-to-September quarter of 2017. The upside can be attributed to rise in business volumes related to Subsea Services and Surface Pressure Controlunit.
Revenues from the Turbomachinery & Process Solutions unit declined to $1,389 million from $1,414 million in the year-ago quarter.
Moreover, segmental income dipped to $132 million from $134 million in the third quarter of 2017, due to fall in volumes of contractual activities.
Revenues in the Digital Solutions segment amounted to $653 million, up 6.4% from $614 million in the year-ago quarter.
Operating profit in the business segment totaled $106 million, up 37.7% from the year-ago quarter’s level of $77 million. Higher contributions from businesses associated with Pipeline and Process Solutions supported the segmental performances.
Orders
Total orders from the all business segments through third-quarter 2018 came in at roughly $5.7 billion, unchanged year over year. Oilfield Services and Turbomachinery & Process Solutions business units contributed to roughly $3 billion and $1.6 billion orders, respectively.
Outlook
The company projects higher activities in several international markets. Baker Hughes also expects higher growth in the upcoming quarters which will be backed by rising rig count and operating wells in North America. The company is also optimistic about LNG and expects 65 million tons per annum of new capacity to be approved by 2020.
Balance Sheet
Baker Hughes’ capital expenditure in the third quarter grossed $94 million. As of Sep 30, 2018, the company had approximately $4.8 billion in cash, cash equivalents and restricted cash as well as $6.3 billion in long-term debt, representing a debt-to-capitalization ratio of 14.7%.
Zacks Rank & Stocks to Consider
Currently, Baker Hughes carries a Zacks Rank #3 (Hold).
Based in Wayzata, Minnesota, Northern Oil and Gas is an exploration and production company. It pulled off an average positive earnings surprise of 138.5% in the last four quarters.
Headquartered in Calgary, Alberta, Enbridge is a leading energy infrastructure company. The company delivered an average positive earnings surprise of 35.3% in the trailing four quarters.
Based in Rome, Italy, Eni is among the leading integrated energy players in the world. The partnership delivered a negative earnings surprise of 0.3% in the last four quarters.
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Baker Hughes (BHGE) Lags Q3 Earnings & Revenue Estimates
Baker Hughes, a GE company, reported third-quarter 2018 adjusted earnings of 19 cents per share, which missed the Zacks Consensus Estimate of 21 cents. The downside was caused by a drop in volumes of contractual activities. This was partially offset by increased pressure pumping activities and contributions from Inspection Technologies.
Revenues amounted to $5,665 million, which missed the Zacks Consensus Estimate of $5,891 million. Nevertheless, the figure improved from the year-ago quarter’s tally of $5,301 million.
Baker Hughes, a GE company Price, Consensus and EPS Surprise
Baker Hughes, a GE company Price, Consensus and EPS Surprise | Baker Hughes, a GE company Quote
Segmental Performance
Revenues in the Oilfield Services unit amounted to $2,993 million, up 12.5% from the year-ago quarter’s sales of $2,661 million.
Operating income in the business segment came in at $231 million, up from $88 million in third-quarter 2017.
Higher activities related to pressure pumping, artificial lift and completions & drilling primarily aided the segment.
Revenues in the Oilfield Equipment unit totaled $631 million, up 3% from the prior-year quarter’s tally of $613 million.
Moreover, the segment reported profit of $6 million, against a loss of $41 million in the July-to-September quarter of 2017. The upside can be attributed to rise in business volumes related to Subsea Services and Surface Pressure Controlunit.
Revenues from the Turbomachinery & Process Solutions unit declined to $1,389 million from $1,414 million in the year-ago quarter.
Moreover, segmental income dipped to $132 million from $134 million in the third quarter of 2017, due to fall in volumes of contractual activities.
Revenues in the Digital Solutions segment amounted to $653 million, up 6.4% from $614 million in the year-ago quarter.
Operating profit in the business segment totaled $106 million, up 37.7% from the year-ago quarter’s level of $77 million. Higher contributions from businesses associated with Pipeline and Process Solutions supported the segmental performances.
Orders
Total orders from the all business segments through third-quarter 2018 came in at roughly $5.7 billion, unchanged year over year. Oilfield Services and Turbomachinery & Process Solutions business units contributed to roughly $3 billion and $1.6 billion orders, respectively.
Outlook
The company projects higher activities in several international markets. Baker Hughes also expects higher growth in the upcoming quarters which will be backed by rising rig count and operating wells in North America. The company is also optimistic about LNG and expects 65 million tons per annum of new capacity to be approved by 2020.
Balance Sheet
Baker Hughes’ capital expenditure in the third quarter grossed $94 million. As of Sep 30, 2018, the company had approximately $4.8 billion in cash, cash equivalents and restricted cash as well as $6.3 billion in long-term debt, representing a debt-to-capitalization ratio of 14.7%.
Zacks Rank & Stocks to Consider
Currently, Baker Hughes carries a Zacks Rank #3 (Hold).
A few better-ranked players in the same sector are Northern Oil and Gas, Inc (NOG - Free Report) , Enbridge Inc (ENB - Free Report) and Eni SpA (E - Free Report) . All these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Based in Wayzata, Minnesota, Northern Oil and Gas is an exploration and production company. It pulled off an average positive earnings surprise of 138.5% in the last four quarters.
Headquartered in Calgary, Alberta, Enbridge is a leading energy infrastructure company. The company delivered an average positive earnings surprise of 35.3% in the trailing four quarters.
Based in Rome, Italy, Eni is among the leading integrated energy players in the world. The partnership delivered a negative earnings surprise of 0.3% in the last four quarters.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>