The 10-second takeaway
For the quarter ended March 31 (Q1), Baker Hughes met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share shrank significantly.
Margins contracted across the board.
Baker Hughes chalked up revenue of $5.23 billion. The 21 analysts polled by S&P Capital IQ expected a top line of $5.18 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.65. The 31 earnings estimates compiled by S&P Capital IQ predicted $0.63 per share. Non-GAAP EPS of $0.65 for Q1 were 24% lower than the prior-year quarter's $0.86 per share. GAAP EPS of $0.60 for Q1 were 30% lower than the prior-year quarter's $0.86 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.3%, 310 basis points worse than the prior-year quarter. Operating margin was 8.7%, 300 basis points worse than the prior-year quarter. Net margin was 5.1%, 200 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $5.21 billion. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $21.61 billion. The average EPS estimate is $3.08.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,167 members out of 1,211 rating the stock outperform, and 44 members rating it underperform. Among 281 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 271 give Baker Hughes a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Baker Hughes is hold, with an average price target of $50.20.
Is Baker Hughes the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add Baker Hughes to My Watchlist.