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Baker Hughes (BKR) Q2 Earnings and Revenues Beat Estimates
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Baker Hughes Company (BKR - Free Report) reported second-quarter 2024 adjusted earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 49 cents. The bottom line also improved from the year-ago quarter’s level of 39 cents.
Total quarterly revenues of $7,139 million beat the Zacks Consensus Estimate of $6,814 million. The top line also increased from the year-ago quarter’s $6,315 million.
The strong quarterly results were primarily driven by significant contracts in its Oilfield Services & Equipment segment, including major contracts with Petrobras and the State Oil Company of Azerbaijan Republic. Additionally, the Industrial & Energy Technology segment's leadership in gas technology secured major contracts in Algeria, Latin America and the Asia Pacific, contributing to the company's revenue growth.
Baker Hughes Company Price, Consensus and EPS Surprise
BKR was reorganized from four to two operating segments — Oilfield Services and Equipment, and Industrial & Energy Technology. The segments became operational from Oct 1, 2022.
Revenues from the Oilfield Services and Equipment unit amounted to $4,011 million, up 3% from the year-ago quarter’s figure of $3,877 million. The reported figure also beat our estimate of $3,958.9 million.
Operating income from the segment totaled $493 million, up 18% from $417 million reported in the second quarter of 2023, backed by higher volume and price.
Revenues from the Industrial & Energy Technology unit amounted to $3,128 million, up 28% from the year-ago quarter’s $2,438 million. Our estimate for the metric was pegged at $2,846.1 million.
Operating income from the segment totaled $442 million, up 42% from the year-ago quarter’s level of $311 million due to higher volumes and pricing.
Costs and Expenses
Baker Hughes recorded total costs and expenses of $6,306 million in the second quarter, up from the year-ago quarter’s figure of $5,801 million. Our projection for the same was pinned at $6,148.8 million.
Orders
Orders from all business segments amounted to $7,526 million, up 1% year over year from $7,474 million. We expected the figure to be $7,435.7 million.
Higher order intakes from the Industrial & Energy Technology segment were partially offset by lower orders in the Oilfield Services and Equipment segment.
Free Cash Flow
Baker Hughes generated a free cash flow of $106 million in the reported quarter compared with $623 million in the year-ago period.
Capex & Balance Sheet
BKR’s net capital expenditure in the second quarter was $242 million.
As of Jun 30, 2024, it had cash and cash equivalents of $2,284 million. The company had a long-term debt of $5,861 million at the end of the reported quarter, marking a debt-to-capitalization of 27.8%.
Zacks Rank & Stocks to Consider
Baker Hughes currently carries a Zacks Rank #3 (Hold).
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.26, respectively. The partnership has witnessed upward earnings estimate revisions for 2025 in the past seven days.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.30. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 in the past seven days.
Hess is a leading oil and natural gas exploration and production company that made several world-class oil discoveries in the Stabroek Block, located off the coast of Guyana. The company is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. The merger will likely result in the creation of an energy behemoth with a massive portfolio of producing assets.
The Zacks Consensus Estimate for HES’ 2024 EPS is pegged at $10.98. The company has a Zacks Style Score of A for Growth. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
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Baker Hughes (BKR) Q2 Earnings and Revenues Beat Estimates
Baker Hughes Company (BKR - Free Report) reported second-quarter 2024 adjusted earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 49 cents. The bottom line also improved from the year-ago quarter’s level of 39 cents.
Total quarterly revenues of $7,139 million beat the Zacks Consensus Estimate of $6,814 million. The top line also increased from the year-ago quarter’s $6,315 million.
The strong quarterly results were primarily driven by significant contracts in its Oilfield Services & Equipment segment, including major contracts with Petrobras and the State Oil Company of Azerbaijan Republic. Additionally, the Industrial & Energy Technology segment's leadership in gas technology secured major contracts in Algeria, Latin America and the Asia Pacific, contributing to the company's revenue growth.
Baker Hughes Company Price, Consensus and EPS Surprise
Baker Hughes Company price-consensus-eps-surprise-chart | Baker Hughes Company Quote
Segmental Performance
BKR was reorganized from four to two operating segments — Oilfield Services and Equipment, and Industrial & Energy Technology. The segments became operational from Oct 1, 2022.
Revenues from the Oilfield Services and Equipment unit amounted to $4,011 million, up 3% from the year-ago quarter’s figure of $3,877 million. The reported figure also beat our estimate of $3,958.9 million.
Operating income from the segment totaled $493 million, up 18% from $417 million reported in the second quarter of 2023, backed by higher volume and price.
Revenues from the Industrial & Energy Technology unit amounted to $3,128 million, up 28% from the year-ago quarter’s $2,438 million. Our estimate for the metric was pegged at $2,846.1 million.
Operating income from the segment totaled $442 million, up 42% from the year-ago quarter’s level of $311 million due to higher volumes and pricing.
Costs and Expenses
Baker Hughes recorded total costs and expenses of $6,306 million in the second quarter, up from the year-ago quarter’s figure of $5,801 million. Our projection for the same was pinned at $6,148.8 million.
Orders
Orders from all business segments amounted to $7,526 million, up 1% year over year from $7,474 million. We expected the figure to be $7,435.7 million.
Higher order intakes from the Industrial & Energy Technology segment were partially offset by lower orders in the Oilfield Services and Equipment segment.
Free Cash Flow
Baker Hughes generated a free cash flow of $106 million in the reported quarter compared with $623 million in the year-ago period.
Capex & Balance Sheet
BKR’s net capital expenditure in the second quarter was $242 million.
As of Jun 30, 2024, it had cash and cash equivalents of $2,284 million. The company had a long-term debt of $5,861 million at the end of the reported quarter, marking a debt-to-capitalization of 27.8%.
Zacks Rank & Stocks to Consider
Baker Hughes currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Sunoco LP (SUN - Free Report) , SM Energy Company (SM - Free Report) and Hess Corporation (HES - Free Report) . While Sunoco and SM Energy currently sport a Zacks Rank #1 (Strong Buy) each, Hess carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.26, respectively. The partnership has witnessed upward earnings estimate revisions for 2025 in the past seven days.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.30. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 in the past seven days.
Hess is a leading oil and natural gas exploration and production company that made several world-class oil discoveries in the Stabroek Block, located off the coast of Guyana. The company is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. The merger will likely result in the creation of an energy behemoth with a massive portfolio of producing assets.
The Zacks Consensus Estimate for HES’ 2024 EPS is pegged at $10.98. The company has a Zacks Style Score of A for Growth. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.