The 10-second takeaway
For the quarter ended June 30 (Q2), Baker Hughes beat slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.
Gross margins contracted, operating margins contracted, net margins improved.
Baker Hughes recorded revenue of $5.33 billion. The 18 analysts polled by S&P Capital IQ anticipated a top line of $5.25 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $4.74 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 $1.00. The 25 earnings estimates compiled by S&P Capital IQ forecast $0.78 per share. GAAP EPS of $1.00 for Q2 were 30% higher than the prior-year quarter's $0.77 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 20.1%, 300 basis points worse than the prior-year quarter. Operating margin was 12.0%, 250 basis points worse than the prior-year quarter. Net margin was 8.2%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $5.52 billion. On the bottom line, the average EPS estimate is $0.90.
Next year's average estimate for revenue is $21.87 billion. The average EPS estimate is $3.63.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,175 members out of 1,218 rating the stock outperform, and 44 members rating it underperform. Among 292 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 283 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 $56.38.
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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.