UPDATE: Baker Hughes Shares Drop After Downbeat Q3 Earnings

Shares of Baker Hughes

tumbled more than 8.5% in pre-market trading after the company reported downbeat third-quarter profit. The Houston, Texas-based company posted a quarterly profit of $375 million, or $0.86 per share, versus a year-ago profit of $341 million, or $0.77 per share. Excluding certain items, its adjusted earnings came in at $1.02 per share. Its revenue climbed 8% to $6.25 billion. However, analysts were projecting earnings of $1.14 per share on revenue of $6.28 billion. Baker Hughes' North American segment posted an 11% rise in revenue to $3.2 billion, while revenue surged 6% in the Middle East and Asia Pacific region. Revenue in the Europe, Africa and Russia Caspian segment surged 8%, while Latin America revenue gained 3%. Martin Craighead, Baker Hughes Chairman and Chief Executive Officer commented, "Our third quarter results included record revenue, record free cash flow, and more than a 10% sequential increase in adjusted earnings. We achieved these results despite several geopolitical events in the Eastern Hemisphere and a sharp reduction of activity in the Gulf of Mexico which caused margins to fall short of our expectations.” Baker Hughes shares slipped 8.54% to $49.05 in pre-market trading.