Baker Hughes: What to Watch for This Earnings Season

Energy analyst Joel South discusses Baker Hughes, the oil equipment and services company set to release earnings on Friday. Although the top line increased by 11% in the first quarter, earnings per share dropped, which could indicate margins are being pinched. Pricing power has diminished domestically for Baker Hughes as well as competitors Halliburton, Schlumberger, and Weatherford. Baker Hughes' earnings report should help investors understand the effect of shrinking domestic margins and international opportunities, so be sure to stay tuned.

With the price of crude reaching the $100 mark, oil companies are likely to expand production as profits can be made above their marginal cost. However, if you have a negative outlook on energy prices, then our analysts have uncovered an under-the-radar company that you will be interested in. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out our special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.

The article Baker Hughes: What to Watch for This Earnings Season originally appeared on Fool.com.

Joel South owns shares of Schlumberger and Halliburton. The Motley Fool owns shares of Halliburton. Motley Fool newsletter services recommend Halliburton and Schlumberger. 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.