Singapore markets closed
  • Straits Times Index

    3,204.82
    +2.01 (+0.06%)
     
  • Nikkei

    32,402.41
    -168.62 (-0.52%)
     
  • Hang Seng

    18,057.45
    +402.04 (+2.28%)
     
  • FTSE 100

    7,683.91
    +5.29 (+0.07%)
     
  • Bitcoin USD

    26,590.17
    +10.02 (+0.04%)
     
  • CMC Crypto 200

    565.87
    -2.18 (-0.38%)
     
  • S&P 500

    4,320.06
    -9.94 (-0.23%)
     
  • Dow

    33,963.84
    -106.58 (-0.31%)
     
  • Nasdaq

    13,211.81
    -12.18 (-0.09%)
     
  • Gold

    1,944.90
    +5.30 (+0.27%)
     
  • Crude Oil

    90.33
    +0.70 (+0.78%)
     
  • 10-Yr Bond

    4.4380
    -0.0420 (-0.94%)
     
  • FTSE Bursa Malaysia

    1,450.23
    +2.02 (+0.14%)
     
  • Jakarta Composite Index

    7,016.84
    +25.38 (+0.36%)
     
  • PSE Index

    6,142.79
    +48.08 (+0.79%)
     

Baker Hughes (BKR) to Report Q1 Earnings: What to Expect?

Baker Hughes Company BKR is set to report first-quarter 2023 results on Apr 19, before the opening bell.

In the last reported quarter, the oilfield service provider’s adjusted earnings of 38 cents per share missed the Zacks Consensus Estimate of 41 cents due to higher costs and expenses. The negatives were partially offset by higher contributions from the Oilfield Services and Equipment business unit.

In the trailing four quarters, Baker Hughes beat the Zacks Consensus Estimate once and missed the same thrice, the negative earnings surprise being 18.6%, on average. 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 and EPS Surprise

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

Let’s delve into the factors that are anticipated to have influenced the oilfield service firm’s performance in the March-end quarter.

Estimate Trend

The Zacks Consensus Estimate for first-quarter earnings per share of 26 cents has witnessed no upward movement and two downward revisions in the past 30 days. The consensus estimate suggests an increase of 73.3% from the year-ago reported number.

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $5.5 billion indicates a 13.9% improvement from the year-ago reported figure.

Factors to Consider

The West Texas Intermediate crude price was considerably higher in the first quarter of 2023. High oil prices were favorable for the exploration and production operations in the March-end quarter.

With higher exploration operations, the demand for oilfield services was promising since oilfield service firms help upstream companies efficiently set up oil wells. Thus, the higher oil price is likely to have aided Baker Hughes’ oilfield service business in the first quarter.

The Zacks Consensus Estimate for operating income from the company’s Oilfield Services is pegged at $365 million, suggesting a massive increase from the $221 million reported in the March-end quarter of last year. Our estimate for operating income from the company’s Oilfield Services is pegged at 365.4 thousand barrels of oil equivalent, indicating an increase from the prior-year quarter’s reported figure.

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 $5.1 billion, indicating an increase from the $4.6 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. But that is not the case here.

Earnings ESP: Baker Hughes has an Earnings ESP of -5.3%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Baker Hughes currently carries a Zacks Rank #2.

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 in the upcoming quarterly reports:

TechnipFMC plc FTI currently has an Earnings ESP of +29.63% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

TechnipFMC is scheduled to release first-quarter earnings on Apr 27. The Zacks Consensus Estimate for FTI’s earnings is pegged at 4 cents per share, suggesting an increase from the prior-year reported figure.

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.

Enphase Energy, Inc. ENPH has an Earnings ESP of +2.57% and is a Zacks #3 Ranked player at present.

Enphase Energy is scheduled to release first-quarter results on Apr 25. The Zacks Consensus Estimate for ENPH’s earnings is pegged at $1.20 per share, suggesting an increase from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

TechnipFMC plc (FTI) : Free Stock Analysis Report

CNX Resources Corporation. (CNX) : Free Stock Analysis Report

Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report

Baker Hughes Company (BKR) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research