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Baker Hughes Beats Q3 Expectations, Shares Jump

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Baker Hughes Inc. (NYSE: BHI) reported on Friday that fiscal third quarter income jumped 22%, aided by strong performance at its North American segment.

Lately, over-supply of natural gas has prompted energy companies to slash prices, which has hurt margin and the bottom line. As a result, energy companies have started to focus on oil-rich shale, which is harder to tap. However, the strategic shift has its own peril, leading to inefficiencies and increase in costs for oil field drilling solutions providers. In this backdrop, Baker Hughes’s pressure pumping business has felt the heat.

Still, the oil field service provider’s North American segment performed rather strongly in the latest quarter, which is reflected by its better-than-expected earnings and revenue. Baker Hughes said that services such as drilling, artificial lift, completion systems and upstream chemical businesses helped driving up growth in the North American segment.

For the latest period, Baker Hughes posted a profit of $341 million or 77 cents a share, up from $279 million or 63 cents a share. Stripping out onetime items such as severance charges and costs linked to closure of a plant and some other expenses, the adjusted earnings came in at 81 cents a share, up from 73 cents a share, in the year-ago period.

Revenue jumped 8.1% to $5.79 billion.

Analysts’ consensus estimate was for earnings of 78 cents a share on revenue of $5.77 billion, according to a poll conducted by Thomson Reuters.

Net income at the company’s North American segment, which is Baker Hughes’ biggest revenue generator, rose 2.4% while revenue increased 4.1%.

Excluding Latin America, both revenue and profit improved in other regions as well.








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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