What's Next: Baker Hughes's Earnings Preview

Baker Hughes BKR is gearing up to announce its quarterly earnings on Tuesday, 2024-10-22. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Baker Hughes will report an earnings per share (EPS) of $0.61.

Investors in Baker Hughes are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Past Earnings Performance

Last quarter the company beat EPS by $0.08, which was followed by a 5.82% increase in the share price the next day.

Here's a look at Baker Hughes's past performance and the resulting price change:

Stock Performance

Shares of Baker Hughes were trading at $36.4 as of October 18. Over the last 52-week period, shares are up 6.58%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Baker Hughes

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Baker Hughes.

With 19 analyst ratings, Baker Hughes has a consensus rating of Outperform. The average one-year price target is $43.42, indicating a potential 19.29% upside.

Analyzing Analyst Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Halliburton, Schlumberger and TechnipFMC, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Halliburton, with an average 1-year price target of $41.47, suggesting a potential 13.93% upside.
• The consensus outlook from analysts is an Outperform trajectory for Schlumberger, with an average 1-year price target of $60.23, indicating a potential 65.47% upside.
• The consensus outlook from analysts is an Buy trajectory for TechnipFMC, with an average 1-year price target of $33.0, indicating a potential 9.34% downside.

Peers Comparative Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Halliburton, Schlumberger and TechnipFMC, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Baker Hughes ranks highest in gross profit among its peers. It is in the middle for consensus rating and return on equity. However, it lags behind in revenue growth compared to its peers.

Delving into Baker Hughes's Background

Baker Hughes is a global leader in oilfield services and oilfield equipment, with particularly strong presences in the artificial lift, specialty chemicals, and completions markets. It maintains modest exposure to offshore oil and gas production. The other half of its business focuses on industrial power generation, process solutions, and industrial asset management, with a high exposure to the liquid natural gas market specifically, as well as broader industrials end markets.

Financial Insights: Baker Hughes

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Baker Hughes's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 13.05%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Energy sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Baker Hughes's net margin is impressive, surpassing industry averages. With a net margin of 8.11%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 3.74%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Baker Hughes's ROA stands out, surpassing industry averages. With an impressive ROA of 1.57%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.38, Baker Hughes adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Baker Hughes visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.