On a GAAP basis, Baker Hughes posted EPS of $0.80, which includes a $62 million ($0.09 per share) charge for litigation settlements and $12 million ($0.03 per share) associated with Venezuela’s currency devaluation.
Baker Hughes did not offer any guidance. The consensus estimates for the third quarter call for EPS of $0.1.15 on revenues of $6.25 billion. For the full year, EPS is estimated at $4.18 on revenues of $24.32 billion.
The company’s CEO said:
In North America, … [t]he rising sales of [new] products, along with an increase in onshore and offshore activity in the United States, more than offset the seasonal decline in our Canadian business. … Products and services we recently introduced to improve the economics of North America shale production, are now finding new homes in the Middle East, Argentina, North Africa, Russia, and China. … We anticipate increased activity for the remainder of the year in the form of higher international rig counts, and increased North American well counts. As a result, we project strong earnings growth as we fulfill the industry’s growing need for innovative new technologies.
Schlumberger N.V. (NYSE: SLB), the largest of the oil field service companies, reports earnings after markets close Thursday. The firm is expected to post EPS of $1.36 on revenues of $11.94 billion.
Shares of Baker Hughes closed up about 2.2% at $74.39 on Wednesday and were inactive Thursday morning. The stock’s 52-week range is $46.09 to $75.64. Thomson Reuters had a consensus analyst price target of around $81.40 before these results were announced.
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