Baker Hughes Beats on Both Top and Bottom Lines
Baker Hughes (NYS: BHI) reported earnings on April 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Baker Hughes beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped.
Margins shrank across the board.
Baker Hughes tallied revenue of $5.36 billion. The 19 analysts polled by S&P Capital IQ predicted a top line of $5.25 billion on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $4.53 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.86. The 24 earnings estimates compiled by S&P Capital IQ averaged $0.80 per share. GAAP EPS of $0.86 for Q1 were 1.1% lower than the prior-year quarter's $0.87 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.4%, 230 basis points worse than the prior-year quarter. Operating margin was 11.7%, 240 basis points worse than the prior-year quarter. Net margin was 7.1%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $5.26 billion. On the bottom line, the average EPS estimate is $0.81.
Next year's average estimate for revenue is $22.03 billion. The average EPS estimate is $3.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,175 members out of 1,221 rating the stock outperform, and 46 members rating it underperform. Among 321 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 312 give Baker Hughes a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Baker Hughes is outperform, with an average price target of $61.47.
How did Baker Hughes treat you during the oil spike in 2008 and the subsequent bust? More important, what are you doing to prepare for the next spike that some experts believe may be just around the corner? Prepare yourself with a well-positioned energy stock we profile in "The Only Energy Stock You'll Ever Need." Click here for instant access to this free report.
- Add Baker Hughes to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.