Baker Hughes Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

Baker Hughes (NYS: BHI) reported earnings on July 20. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Baker Hughes beat slightly on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.


Gross margins contracted, operating margins contracted, net margins improved.

Revenue details
 Baker Hughes recorded revenue of $5.33 billion. The 18 analysts polled by S&P Capital IQ anticipated a top line of $5.25 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $4.74 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $1.00. The 25 earnings estimates compiled by S&P Capital IQ forecast $0.78 per share. GAAP EPS of $1.00 for Q2 were 30% higher than the prior-year quarter's $0.77 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 20.1%, 300 basis points worse than the prior-year quarter. Operating margin was 12.0%, 250 basis points worse than the prior-year quarter. Net margin was 8.2%, 110 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $5.52 billion. On the bottom line, the average EPS estimate is $0.90.

Next year's average estimate for revenue is $21.87 billion. The average EPS estimate is $3.63.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,175 members out of 1,218 rating the stock outperform, and 44 members rating it underperform. Among 292 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 283 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 $56.38.

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The article Baker Hughes Beats Up on Analysts Yet Again originally appeared on Fool.com.

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.

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