Baker Hughes Tops Q4 Revenue Estimates, Clocks Order Growth Of 28%

Baker Hughes Co BKR reported fourth-quarter revenue growth of 8% sequentially and flat year-over-year to $5.52 billion, beating the consensus of $5.49 billion.
Orders grew by 28% Y/Y to $6.7 billion and were up 24% sequentially.
Adjusted EPS improved to $0.25 compared to $(0.07) in 4Q20, missing the consensus of $0.28.
GAAP operating income increased 52% Q/Q to $574 million. Adjusted operating income of $571 million improved 42% Q/Q and 23% Y/Y. Adjusted operating margin expanded by 195 bps Y/Y to 10.3%.
Revenues by segments: Oilfield Services $2.57 billion (+12% Y/Y), Oilfield Equipment $619 million (-13% Y/Y); Turbomachinery & Process Solutions $1.78 billion (-9% Y/Y), and Digital Solutions $558 million (flat).
Adjusted EBITDA was $844 million (+10% Y/Y), and margin improved by 130 bps to 15.3%.
Baker Hughes generated cash from operating activities for FY21 of $2.37 billion, compared to $1.3 billion a year ago. Free cash flow was $1.83 billion.
The company held cash and equivalents of $3.85 billion as of December 31, 2021.
"As we look ahead to 2022, we expect the pace of global economic growth to remain strong although slightly moderate compared to 2021," said Lorenzo Simonelli, Baker Hughes chairman, and CEO.
Price Action: BKR shares are trading higher by 5.10% at $27.62 on the last check Thursday.

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