What's In Store For Baker Hughes (BHGE) In Q2 Earnings?
Zacks Investment Research | Jul 28, 2019 09:38PM ET
Baker Hughes, a GE company (NYSE:BHGE) is set to release second-quarter 2019 results before the market opens on Jul 31.
Although the oilfield service player beat the Zacks Consensus Estimate in the March quarter of 2019, the company missed estimates in three of the past four quarters, the average negative earnings surprise being 7.3%.
Let’s see how things are shaping up for this announcement.
Which Way are Estimates Trending?
Let’s take a look at estimate revisions to get a clear picture of what analysts are thinking about the company before the earnings release.
Although, the Zacks Consensus Estimate for second-quarter earnings of 19 cents has witnessed no upward and downward revisions by firms in the past 30 days, the bottom-line is likely to see year-over-year earnings growth of 90%.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $5.8 billion, suggesting an improvement of roughly 5% from the year-ago reported figure.
Factors at Play
The Zacks Consensus Estimate for second-quarter operating income from the Digital Solutions unit is pegged at $82 million, reflecting a decline from $96 million in the year-ago reported quarter.
The Oilfield Equipment segment is expected to generate an operating income of $11.59 million compared with the year-ago period’s reported loss of $12.
The Zacks Consensus Estimate for second-quarter operating income from the Oilfield Services segment is pegged at $228 million, implying a rise from the year-ago reported figure of $189 million.
The Zacks Consensus Estimate for operating income from the Turbomachinery & Process Solutions is pegged at $125 million, indicating an increase from $113 million in the June quarter of 2018.
Total orders from all the segments for the second quarter is expected to be $7.5 billion, suggesting an increase from the year-ago figure of roughly $6 billion.
Increase in total orders and rising profit levels from Oilfield Equipment and Oilfield Services units will likely boost the company’s second-quarter earnings. However, lower profit levels in Digital Solutions can affect earnings growth in the to-be-reported quarter.
Baker Hughes, a GE company Price and EPS Surprise
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