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Is a Beat in Store for Baker Hughes (BKR) in Q2 Earnings?

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Baker Hughes Company (BKR - Free Report) is set to report second-quarter 2024 results on Jul 25, after the closing bell.

In the last reported quarter, the oilfield service provider’s adjusted earnings of 43 cents per share beat the Zacks Consensus Estimate of 40 cents, driven by significant contracts in the Oilfield Services and Equipment business unit.

The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 11.4%. 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-eps-surprise | Baker Hughes Company Quote

Estimate Trend

The Zacks Consensus Estimate for second-quarter earnings per share of 49 cents has witnessed one upward revision and one downward revision in the past seven days. The consensus estimate implies an increase of 25.6% from the year-ago reported number.

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $6.81 billion indicates a 7.9% improvement from the year-ago reported figure.

Factors to Consider

Baker Hughes is anticipated to have sustained a stable performance in the second quarter of 2024, supported by its advanced technologies and equipment catering to upstream companies. Amid increasing demand for clean energy, the company expects significant growth from lucrative LNG contracts worldwide. An expanding portfolio of international opportunities solidifies its long-term prospects, ensuring project visibility well beyond 2026.

According to data from the U.S. Energy Information Administration, the price of West Texas Intermediate crude oil surged 11.3% year over year and 5.55% sequentially. This increase in commodity prices has led to higher revenues for service providers like Baker Hughes.

These factors are anticipated to have aided demand and pricing dynamics, positively impacting BKR's financial performance for the quarter.

Earnings Whispers

Our proven model indicates 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. That is just the case here, as you will see below.

Earnings ESP: Baker Hughes has an Earnings ESP of +0.75%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Other Stocks to Consider

Here are some other stocks that you may want to consider, as these too have the right combination of elements to post an earnings beat this reporting cycle.

Sunoco LP (SUN - Free Report) currently has an Earnings ESP of +1.96% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sunoco is scheduled to release second-quarter earnings on Aug 7. The Zacks Consensus Estimate for earnings is pegged at $1.79 per share, suggesting a 129.5% increase from the prior-year reported figure.

Viper Energy Inc. (VNOM - Free Report) presently has an Earnings ESP of +10.44% and a Zacks Rank #2.

Viper Energy is scheduled to release second-quarter earnings on Aug 5. The Zacks Consensus Estimate for earnings is pegged at 43 cents per share, suggesting an 8.5% decline from the prior-year reported figure.

Enterprise Products Partners L.P.  (EPD - Free Report) currently has an Earnings ESP of +4.25% and a Zacks Rank #3.

Enterprise is scheduled to release second-quarter earnings on Jul 30. The Zacks Consensus Estimate for earnings is pegged at 65 cents per share, indicating a 14.04% increase from the prior-year reported figure.

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

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