The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Baker Hughes missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Baker Hughes reported revenue of $5.23 billion. The 20 analysts polled by S&P Capital IQ expected to see a top line of $5.40 billion on the same basis. GAAP reported sales were 1.0% higher than the prior-year quarter's $5.18 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 $0.70. The 28 earnings estimates compiled by S&P Capital IQ anticipated $0.84 per share. GAAP EPS of $0.63 for Q3 were 61% lower than the prior-year quarter's $1.61 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 17.7%, 640 basis points worse than the prior-year quarter. Operating margin was 8.8%, 700 basis points worse than the prior-year quarter. Net margin was 5.3%, 830 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $5.55 billion. On the bottom line, the average EPS estimate is $0.92.
Next year's average estimate for revenue is $21.67 billion. The average EPS estimate is $3.65.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,179 members out of 1,224 rating the stock outperform, and 45 members rating it underperform. Among 304 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 296 give Baker Hughes a green thumbs-up, and eight 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 $56.15.
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