Jefferies Reports Baker Hughes 4Q First Look
In a recent research report, Jefferies commented on Baker Hughes (NYSE: BHI) recurring EPS of $1.22 below estimate of $1.30.
“NAM margins came in significantly below our expectations (18.7% vs 21.8% expected) as revenue was approximately $60 MM below our forecast and cost pressures in the company's pressure pumping segment squeezed margins more than anticipated. Although BHI made comments late in the quarter about lower NAM margins and we adjusted our model, the reported margin level was still below expectations for similar reasons as Halliburton (HAL, $35.44, Buy), who reported disappointing margins yesterday - costs, transportation, and logistics issues,” Jefferies said in the report.
Jefferies reiterates its Buy rating and $65.00 PT on Baker Hughes, which closed yesterday at $47.73.
