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Baker Hughes (BKR) Beats Earnings & Revenue Estimates in Q1

Baker Hughes Company BKR has reported first-quarter 2023 adjusted earnings of 28 cents per share, beating the Zacks Consensus Estimate of 26 cents. The bottom line improved from the year-ago quarter’s 15 cents.

Total quarterly revenues of $5,716 million surpassed the Zacks Consensus Estimate of $5,507 million. The top line also increased from the year-ago quarter’s $4,835 million.

Stronger-than-expected 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 and EPS Surprise
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.

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Revenues from the Oilfield Services and Equipment unit amounted to $3,577 million, up 19% from the year-ago quarter’s $3,017 million. Baker Hughes’ operating income from the segment was $371 million, up from $213 million reported in first-quarter 2022, backed by increasing revenues in most product lines.

Revenues from the Industrial & Energy Technology unit amounted to $2,138 million, up 18% from the year-ago quarter’s $1,818 million. Baker Hughes’ operating income from the segment was $241 million, flat from the year-ago quarter’s figure due to higher contributions from the Gas Technology segment.

Costs and Expenses

Baker Hughes has recorded total costs and expenses of $5,278 million in the first quarter, up from the year-ago quarter’s $4,556 million.

Orders

Total orders of the company from all business segments in first-quarter 2023 amounted to $7,632 million, up 12% year over year due to 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 $197 million in the reported quarter against a negative free cash flow of $105 million in the year-ago period.

Capex & Balance Sheet

Baker Hughes’ net capital expenditure in the first quarter totaled $264 million.

As of Mar 31, 2023, BKR had cash and cash equivalents of $2,415 million. At the first-quarter end, the company had a long-term debt of $5,975 million, marking a debt-to-capitalization of 31%.

Zacks Rank & Stocks to Consider

Baker Hughes currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Here are some firms that you may want to consider, as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

CNX Resources Corporation CNX has an Earnings ESP of +8.14% and is currently a Zacks #3 Ranked player.

CNX Resources is scheduled to release first-quarter results on Apr 27. The Zacks Consensus Estimate for CNX’s earnings is pegged at 43 cents per share, suggesting a decline from the prior-year reported figure.

Cactus Inc. WHD has an Earnings ESP of +1.50% and is currently a Zacks #2 Ranked player.

Cactus is scheduled to release first-quarter results on May 9. The Zacks Consensus Estimate for WHD’s earnings is pegged at 56 cents per share, suggesting an increase from the prior-year reported figure.

Sunoco LP SUN has an Earnings ESP of +3.95% and is currently a Zacks #1 Ranked player.

Sunoco is scheduled to release first-quarter results on May 2. The Zacks Consensus Estimate for SUN’s earnings is pegged at $1.18 per share, suggesting a decline from the prior-year reported figure.

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