|Bid||22.25 x 3200|
|Ask||22.73 x 1300|
|Day's Range||21.84 - 23.36|
|52 Week Range||1.18 - 28.65|
|Beta (5Y Monthly)||0.98|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jan 21, 2020|
|Forward Dividend & Yield||0.72 (3.17%)|
|Ex-Dividend Date||Nov 05, 2019|
|1y Target Est||29.25|
Baker Hughes (BKR) delivered earnings and revenue surprises of -12.90% and -2.22%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
The unit, Turbomachinery & Process Solutions (TPS), was one of Baker Hughes' strongest in the earlier quarters of 2019, as U.S. LNG developers built new capacity to tap global demand for a cleaner alternative to coal-fired power plants. The company expects TPS revenues to grow 20% this year and margins to expand. U.S. exports of LNG hit a record in October and November, averaging 5.8 billion cubic feet per day (bcfd) and 6.3 bcfd, respectively, according to the U.S. Energy Information Administration.
Baker Hughes Co. reported Wednesday fourth-quarter profit and revenue that rose less than expected, as beats in oilfield services and turbomachinery and process solutions revenue was offset by a miss in oilfield equipment. The stock was still inactive in premarket trading. Net income fell to $48 million, or 7 cents a share, from $131 million, or 28 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share grew to 27 cents from 26 cents, but were below the FactSet consensus of 31 cents. Revenue increased 1% to $6.35 billion, missing the FactSet consensus of $6.48 billion. Orders increased 1% to $6.94 billion. Oilfield services revenue rose 7% to $3.29 billion, above the FactSet consensus of $3.28 billion; turbomachinery revenue fell 8% to $1.32 billion, below expectations of $1.82 billion; oilfield equipment revenue rose 5% to $765 million, beating expectations of $753 million. The stock has gained 0.4% over the past three months, while the SPDR Energy Select Sector ETF has slipped 1.3% and the S&P 500 has gained 10.8%.
Baker Hughes Company (NYSE: BKR) ("Baker Hughes" or the "Company") announced results today for the fourth quarter and total year 2019.
Investors are starting to believe in General Electric (NYSE:GE) again. GE stock has rallied some 54% from August lows. And there's a case that the rally can continue.Source: testing / Shutterstock.com After all, the bull case for General Electric stock rests on a turnaround engineered by chief executive officer Larry Culp. Culp transformed Danaher (NYSE:DHR) into a technology powerhouse; Danaher stock rose some 530% during his 14-year tenure. * 10 Cheap Stocks to Buy Under $10 Culp's appointment as General Electric's CEO on Oct. 1, 2018 was greeted with hopes that Culp could work similar magic: GE stock rose 7.1% on the news. But that enthusiasm has dimmed over time. Even with the rally over the past five months, General Electric shares are up less than 2% in the fifteen-plus months since Culp's hiring was announced.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe lack of upside so far suggests that more upside could be on the way if General Electric can drive the hoped-for turnaround. That's still a huge 'if,' however. Fourth quarter earnings on Jan. 29 will be huge in establishing how much progress GE is making -- and how much confidence investors can have in its future. Why Q4 Earnings Won't Change the CaseThe fourth quarter numbers themselves may not be all that important. Analyst estimates are soft, with the Street looking for earnings per share to climb a penny year-over-year on revenue down 23.5%.The top line pressure isn't necessarily the sign of a declining business. GE Aviation likely will see short-term pressure from the 737 MAX issues at key customer Boeing (NYSE:BA). And a reduction in the company's stake in Baker Hughes (NYSE:BKR) means that business no longer will be part of GE's consolidated financials.Q4 almost certainly isn't going to be impressive. Of course, that won't surprise anyone who's been paying attention. These two short-term factors will hit the reported numbers. And from a long-term standpoint, even Culp himself has emphasized more than once that the turnaround here will take time.The one number that will be closely watched is free cash flow. General Electric already has raised its outlook twice this year, and needs to hit its target. The gap between earnings and cash flow long has been a problem for GE stock. It was a key part of the (admittedly questionable) short seller report that sent shares tumbling briefly last year. And disappointing cash flow generation contributed to the two dividend cuts seen in recent years.Reaching the current forecast of roughly $2 billion in industrial cash flow (which excludes contributions from GE Capital) would be a step toward restoring GE's credibility. That aside, Q4 numbers, barring a huge surprise, seem highly unlikely to change sentiment toward General Electric.But that doesn't mean the fourth quarter release doesn't matter. It does. Why the Q4 Earnings Release Might Change the CaseThe focus won't be on the backward-looking numbers for a quarter affected by external factors. It's going to be on 2020 guidance.Again, General Electric has a long road ahead. Success is not guaranteed. As Dirk Hackbarth, Professor of Finance at the Boston University Questrom School of Business, told InvestorPlace:"Given its rebound, GE's future seems to be less of a "continued turnaround" and more one of a "strategic disinvestment" of its non-core pieces for the best prices it can get…Moreover, the proceeds from asset sales and spin-offs should be used to gradually de-lever GE to a level that is more in line with its profitability (e.g. return on assets) going forward."The bull case is that this will become a "leaner and meaner" General Electric. And so it would do wonders for GE stock if the company can show some progress this year. Right now, analysts aren't sure it will. Wall Street estimates for 2020 earnings per share currently have a wide range: the low estimate, according to Yahoo! Finance, is 49 cents, while the most bullish projection sits at 77 cents.That range isn't surprising given that analyst price targets too have a large split, as Hackbarth pointed out and Barron's noted last year. At the moment, the most bearish analyst (which I believe is Morgan Stanley's Stephen Tusa, long a GE skeptic) values GE stock at $5. The high target is $14.In that context, the 2020 outlook becomes exceedingly important. Full-year 2019 adjusted EPS should come in around 61 cents. If GE guides toward the low end of Street estimates, GE stock quickly looks overvalued. Investors are paying something close to 20x earnings -- and a higher multiple to free cash flow -- for a business still in decline.If GE supports more bullish expectations, however, this story gets much more interesting in a hurry. Guidance for, say, 70 cents would imply double-digit profit growth in 2020. Yet GE stock would be trading at roughly 17x that guidance. Rival Honeywell (NYSE:HON) trades at 21x 2020 consensus earnings with single-digit growth expected. A Big Stretch for GE StockAgain, next week's release won't prove that GE is destined for a turnaround -- or that it's doomed to further declines. But 2020 guidance, in particular, well may establish the direction of General Electric stock for several months, if not the rest of this year.It could go either way. GE stock could look very different depending on the trajectory established by 2020 results. Hackbarth forecast that the stock "more likely stabilizes in the current price range" this year. If 2020 performance in line with current expectations, that forecast is probably correct.But if GE can surprise to the upside, the story improves. GE has "many attractive parts," as Hackbarth put it. Aviation should benefit from long-term air travel demand. Healthcare has real potential, as I detailed last month. GE Power has substantial room for improvement. Those three units underpin the bull case here.That bull case, however, exists mostly on paper for now. It's up to Culp and GE to turn that theoretical potential into practical returns and cash flow. A confident outlook for 2020 can drive more confidence on that front, and thus more confidence in GE stock.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Monthly Dividend Stocks to Buy to Pay the Bills * 7 Earnings Reports to Watch Next Week * 7 5G Stocks to Connect Your Portfolio To The post Why Next Week's Earnings Are Huge for General Electric appeared first on InvestorPlace.
Baker Hughes (BKR) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.
Had there been no waiver extensions, Chevron's (CVX) exit would follow close on the heels of various other U.S.-based players that left Venezuela.
Domestic drillers may again remove rigs since explorers have a conservative capital budget in place and have decided to curb spending on drilling new wells.
Kinder Morgan's (KMI) fourth-quarter results are expected to have been aided by Gulf Coast Express Pipeline's natural gas transportation volumes.
Oil bulls will get no help this week before the week’s end, with Baker Hughes reporting that the number of oil and gas rigs in the US increased this week
Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil rose by 14 to 673 this week. That followed declines for oil rigs in each of the past three weeks. The total active U.S. rig count, meanwhile, was up 15 from last week to 796, according to Baker Hughes. Oil prices extended their decline, with February West Texas Intermediate crude down 20 cents, or 0.3%, at $58.32 a barrel. It was trading at $58.50 before the rig data.
The three biggest oilfield service providers have all announced asset sales as they adapt to an environment featuring lower demand for their services
(Bloomberg) -- As the U.S. shale boom unfolded, the number of oil wells that were drilled but never opened for production steadily rose. Now, that figure has plunged by a surprising 10% in the newest sign yet of tough times for drillers.A weighty decline in the so-called fracklog is perhaps the most salient gauge of a developing slowdown in U.S. shale. It shows that explorers are no longer racing to drill wells faster than they can complete them.The drop adds to a growing body of evidence that shale explorers, pushed by investors to prioritize profits over production, are stepping on the brakes. That’s bad news for oilfield services companies that have depended on rising shale growth for their prosperity. When Halliburton Co., owner of the world’s biggest fleet of fracking pumps, reports on its fourth quarter on Jan. 21, analysts expect to see a 29% earnings decline from a year earlier, excluding certain items.“We continue to believe 2020 will be a tale of two markets, with North America being a muddle while the recovery should continue in international and offshore arenas,” James West, an analyst at Evercore ISI, said Jan. 10 in a note to investors titled, “4Q Earnings Season Could Be Ugly.“The number of drilled but uncompleted wells, known as DUCs, have generally increased since the end of 2016, with the rise largely attributable to factors that include lower-than-ideal pricing for oil and gas and limited pipeline capacity. But between May and November, the number fell to 7,574 from a high of 8,429, according to the most recent data from the U.S. Energy Information Administration.That’s the steepest decline over the last three years. The key now for the biggest service providers may be how quickly they can pivot toward opportunities outside of shale.Consider the case of Baker Hughes Co., which spun off its onshore fracking business three years ago. While Halliburton is expected to report a fourth-quarter decline, Baker Hughes is forecast to report adjusted earnings on Jan. 22 that are up 19% to 31 cents a share, according to analysts.When Schlumberger Ltd., which already has a major focus outside the U.S., reports Friday, it’s expected to best last year’s fourth-quarter adjusted earnings by about a penny to 37 cents a share. The world’s biggest oilfield service company has said its North American land business, which includes pressure pumping, is now under strategic review and analysts say the company could announce an update to the unit on its earnings call.“2019 was a brutal year for completions activity,” analysts at Tudor Pickering Holt & Co. wrote in a note earlier this month. “And the pressure pumpers sit in a deep hole that’ll likely take a while to dig out of absent a stout demand surprise.”To contact the reporter on this story: David Wethe in Houston at email@example.comTo contact the editors responsible for this story: Simon Casey at firstname.lastname@example.org, Reg GaleFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Baker Hughes (BKR) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Bernstein analyst Nicholas Green argues that investors should indeed put money to work in the oil-services sector. He said some companies offer enormous opportunities to savvy investors.
Drillers added 118 rigs during the week ended Jan. 10, bringing the total count up to 203, the highest since March 2019, data from Baker Hughes Co showed on Friday. Most of the rigs added last week were in Alberta (69) and Saskatchewan (42). Drillers in Canada, like their counterparts in the United States, slashed the number of rigs operating in 2019 as energy prices dropped due to a global glut.
Domestic drillers may continue to remove rigs since explorers have a conservative capital budget in place and have decided to curb spending on the drilling of new wells.
Oil futures settled lower on Friday, with U.S. benchmark prices down more than 6% for the week, marking their largest weekly percentage decline since July, according to FactSet data. Baker Hughes reported a third weekly fall in the number of active U.S. rigs drilling for oil, but the news failed to support prices, which have now fallen for four consecutive sessions following a lack of significant developments in the U.S.-Iran conflict. February West Texas Intermediate oil declined by 52 cents, or 0.9%, to settle at $59.04 barrel on the New York Mercantile Exchange. For the week, the front-month contract fell 6.4%, marking the biggest weekly percentage decline since July.
Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil fell by 11 to 659 this week. That followed declines for oil rigs in each of the past two weeks. The total active U.S. rig count, meanwhile, was down 15 from last week at 781, according to Baker Hughes. Oil prices continued to decline, with February West Texas Intermediate crude down 29 cents, or 0.5%, at $59.27 a barrel.