Baker Hughes Incorporated Earnings: Here’s Why the Stock is Down Now
Baker Hughes Incorporated (NYSE:BHI) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 3.28%.
Baker Hughes Incorporated Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 39% to $0.61 in the quarter versus EPS of $1.00 in the year-earlier quarter.
Revenue: Rose 3.02% to $5.49 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Baker Hughes Incorporated reported adjusted EPS income of $0.61 per share. By that measure, the company missed the mean analyst estimate of $0.65. It beat the average revenue estimate of $5.26 billion.
Quoting Management: “Our second quarter results reflect mixed performance across our international operating segments,” said Martin Craighead, Baker Hughes’ Chairman and Chief Executive Officer. “Activity levels continued to rise across the Eastern Hemisphere based on strong demand in deepwater markets, particularly in Europe and Africa, as well as seasonal improvements in Russia. However, our gains in the East were more than offset by a sharp decline in Latin America resulting from reduced activity and demobilization costs in Brazil and Mexico. In response to these conditions, during the second quarter we began taking actions to reduce costs in our Latin America operations. This process should be substantially complete in the third quarter leading to increased profitability in the second half of the year.”
Key Stats (on next page)…