Baker Hughes $BHGE Earnings Miss on Challenging Oil and Gas

Energy services company Baker Hughes, a GE Co. $BHGE reported it’s first earnings since the merger with GE’s oil and gas business on Friday before the market opened. They missed on both EPS and revenue. Parent General Electric $GE also reported weaker earnings this morning.

Energy services company Baker Hughes, a GE Co. $BHGE reported it’s first earnings since the merger with GE’s oil and gas business on Friday October 20 before the market opened. They missed on both EPS and revenue. Parent General Electric $GE also reported weaker earnings this morning.

bakerhughes ge

Earnings: Adjusted operating income for Q3 excludes adjustments of $362 million before tax, related to restructuring charges, merger and related costs. EPS 5 cents lower than expected EPS of 11 cents on revenue of $5.4 billion lower than the expected $5.5 billion (Thomson Reuters) GAAP loss of 24 cents per share.

Reaction: Baker Hughes, a GE Co NYSE: $BHGE Pre Market 33.15 -0.65 -1.92%

Outlook

In overall O&G environment, seen some improvement in activity but not seen meaningful increases in customer capital commitments​

In Oilfield Equipment segment, expect subsea market to be challenged in short term, “little sign” of significant recovery in 2018​ 

Last week there were reports that Baker Hughes was looking to resume buyout talks with construction and engineering services company Subsea 7.

For our earlier $GE  forecast go here: GE Consensus Forecast

If congress can pass regulatory rollbacks after the GOP’s unsuccessful attempt to replace the Affordable Care Act the company as much to gain is the theory.

 

  

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