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At 22% Profit Rise, Wall Street Failed To Capture Baker Hughes Incorporated (NYSE:BHI) This Time Around

Boston, MA 10/22/2013 (wallstreetpr) – Baker Hughes Incorporated (NYSE:BHI) is an oilfield services provider whose technology helps explorers and drillers make sense in their businesses. But that sense has not stretched to Wall Street estimates which failed to predict its coming. In its Q3.13 released Friday, October 18, BHI announced profits increase by 22% against a comparable quarter a year ago.

It is due to growth in drilling activities stretched across different geographical locations which have helped the company record higher revenues, exceeding analysts’ estimates by significant margins.

The company which is headquartered in Houston, Texas reported Q3.13 net income of $341 million which represents at least $0.77 per share. In the similar quarter in 2012, BHI posted $279 in net income which represented $0.63 per share.

The company has however reported, on the adjusted basis, earnings of $358 million, indicating $0.81 per share earnings. In a comparable quarter last year, it noted $322 million, or $0.73 per share in adjusted earnings. It is in these adjusted results that analysts this time around failed to capture BHI. While the company has posted $0.81 EPS, Thomson Reuters had expected it to make adjusted earning of $0.78 EPS for its Q3.13 results.

BHI has also noted a revenue rise of 8% in the Q3.13 earnings. Its latest revenue is $5.79 billion, up from $5.35 billion a year ago. Analysts had pegged their estimates on BHI revenue at $5.77 billion.

In the full-year earnings, BHI is expected to register $2.96 EPS in the current fiscal year.

Following this encouraging performance for Q3.13, BHI closed last week with $24.61 billion in market cap. Its shares gained a whopping 7.28% on Friday to close up $55.55.

The oilfield products and services provider has announced annualized dividend payout of $0.60 and dividend yield of 1.16% based on its shares’ closing price of $51.78 on Thursday, October 17.

The company says that with increasing complexity in the oilfield industry, its technology and services which are aligned with such growing complexity will see even its earnings increase in the coming quarters. This stock therefore makes sense as a green investment add-on to the portfolio.

Published by Chris Brown

About Me: I have a Phd in Economics Gender: Male Interests: Playing games like cricket, volleyball Favorite Music: hip hop, rock, jazz

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