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What: Shares of energy service provider Baker Hughes
So what: Revenue was up 27% to $5.18 billion, but earnings per share of $1.18 fell below expectations of $1.22 from analysts. Lower-than-expected margins in international markets disappointed investors the most as turmoil in Europe dragged on the company.
Now what: Management is still expecting to reach 15% margins in the fourth quarter, but the company's high expectations are being put into question. Relatively low oil prices are weighing on the sector as drillers become less than ecstatic about adding supply to the market. If oil begins to rise on better news in Europe, Baker Hughes may become a buy, but for today I'll sit out the discount.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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