Baker Hughes, a GE company (BHGE) Tops Q1 EPS by 2c, Revenues Miss

Baker Hughes, a GE company (NYSE: BHGE) reported Q1 EPS of $0.15, $0.02 better than the analyst estimate of $0.13. Revenue for the quarter came in at $5.62 billion versus the consensus estimate of $5.63 billion.

• Orders of $5.7 billion for the quarter, down 17% sequentially and up 9% year-over-year
• Revenue of $5.6 billion for the quarter, down 10% sequentially and up 4% year-over-year
• GAAP operating income of $176 million for the quarter, decreased $206 million sequentially and increased $217 million year-over-year
• Adjusted operating income (a non-GAAP measure) of $273 million for the quarter, down 45% sequentially and up 20% year-over-year*
• GAAP diluted earnings per share of $0.06 for the quarter which included $0.09 per share of adjusting items. Adjusted diluted earnings per share (a non-GAAP measure) were $0.15*
• Cash flows used from operating activities were $(184) million for the quarter. Free cash flow (a non-GAAP measure) for the quarter was $(419) million*

“BHGE delivered a solid first quarter against a backdrop of stabilizing global oil and gas markets. U.S. rig count dropped slightly less than expected, and international activity remained steady. The LNG market is very active. While the speed of the recovery varies across these markets, we see our Company positioned to benefit from multiple growth drivers,” said Lorenzo Simonelli, BHGE Chairman and Chief Executive Officer.

“In the first quarter, we booked $5.7 billion in orders, driven by year-over-year growth in three of our four segments. We delivered $5.6 billion in revenue and adjusted operating income in the quarter was $273 million.

“In Oilfield Services (OFS), we saw typical seasonal declines in volume sequentially, and strong year-over-year growth across all product lines. In the quarter, we continued to execute in our core well construction product lines, and re-entered a number of markets globally by securing large, multi-year awards from customers. We remain focused on re-gaining profitable share in critical markets and improving margins.

“In Oilfield Equipment (OFE), we delivered another strong orders quarter, winning major contract awards across a number of subsea projects. Our new approach to subsea development, Subsea Connect, continues to gain traction with customers and was central in our wins with BP on their Tortue project and Beach Energy. We continue to leverage early customer engagement, modular technology and life-of-field planning to lower cost and improve cycle times.

“Our Turbomachinery & Process Solutions (TPS) segment saw continued activity in the LNG market, with further progress on several major projects. In the first quarter, we secured contract awards to provide turbomachinery equipment for the Golden Pass LNG export facility and BP’s Tortue Floating LNG project. We remain at the forefront of technology and solutions for the LNG market and are well positioned as new projects are sanctioned.

“In Digital Solutions (DS), we continue to drive growth with customers across end markets such as electronics, automotive, aviation and additive manufacturing. We are leveraging the strength of our measurement, sensing, and inspection technology portfolios to launch new products for our customers.

“In summary, we have a positive outlook across a number of end markets. Strengthening international markets will have the largest positive impact on our business, while operators in North America will continually re-evaluate their spending plans. The next wave of LNG projects will be positive for us, and we continue to see encouraging signs in the offshore market,” concluded Simonelli.

For earnings history and earnings-related data on Baker Hughes, a GE company (BHGE) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Evogene chairman to address dissident shareholders on results call
• Z Squared outlines AI power strategy and Paradox Data acquisition