Baker Hughes' stock gains after profit matches expectations, while revenue beats
Shares of Baker Hughes Co. rose 1.4% in premarket trading Wednesday, after the oilfield services and products company reported an adjusted third-quarter profit that matched expectations while revenue fell less than forecast. The company swung to a net loss of $170 million, or 25 cents a share, from net income of $57 million, or 11 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share fell to 4 cents from 21 cents, but matched the FactSet consensus of 4 cents. Revenue dropped 34% to $5.05 billion from $5.88 billion but beat the FactSet consensus of $4.78 billion. Oilfield services revenue fell 31% to $2.31 billion to beat expectations of $2.22 billion, turbomachinery and process solutions revenue rose 26% to $1.51 billion to top expectations of $1.35 billion and oilfield equipment revenue was flat at $726 million, above expectations of $720.2 million. "After significant turmoil during the first half of the year, oil markets have somewhat stabilized. However, demand recovery is beginning to level off and significant excess capacity remains, which could create volatility in the future," said Chief Executive Lorenzo Simonelli. "The outlook for natural gas is slightly more optimistic as forward prices have improved with strong demand in Asia and lower expected future gas production in the U.S." The stock has tumbled 46.8% year to date through Tuesday, while the S&P 500 has gained 6.6%.
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