The 10-second takeaway
For the quarter ended March 31 (Q1), Baker Hughes beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped.
Margins shrank across the board.
Baker Hughes tallied revenue of $5.36 billion. The 19 analysts polled by S&P Capital IQ predicted a top line of $5.25 billion on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $4.53 billion.
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 $0.86. The 24 earnings estimates compiled by S&P Capital IQ averaged $0.80 per share. GAAP EPS of $0.86 for Q1 were 1.1% lower than the prior-year quarter's $0.87 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 20.4%, 230 basis points worse than the prior-year quarter. Operating margin was 11.7%, 240 basis points worse than the prior-year quarter. Net margin was 7.1%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $5.26 billion. On the bottom line, the average EPS estimate is $0.81.
Next year's average estimate for revenue is $22.03 billion. The average EPS estimate is $3.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,175 members out of 1,221 rating the stock outperform, and 46 members rating it underperform. Among 321 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 312 give Baker Hughes a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Baker Hughes is outperform, with an average price target of $61.47.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.