Earnings Preview For Baker Hughes (BHI, WFT)
Baker Hughes (NYSE: BHI) is expected to publish its Q1 earnings report on Wednesday, April 27, before the markets open. Analysts are predicting earnings per share to be $0.78, which represents a massive 81.4% rise from the previous year's level of $0.43. Two months ago, analysts lowered their Q1 estimates by $0.04, however.
Baker Hughes is a Houston-based company engaged in the oilfield services industry. Baker Hughes is a supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. The company also provides industrial and other products and services to the downstream refining, and process and pipeline industries. It operates in over 80 countries. Baker Hughes operates in five segments: North America (Combined results for the United States, including Gulf of Mexico, Canada and Trinidad), Latin America (Combined results for Central and South America, including Mexico and excluding Trinidad), Europe/Africa/Russia Caspian (EARC) (Combined results for Europe, Africa- excluding Egypt and Russia Caspian), Middle East/Asia Pacific (MEAP) (Combined results for Middle East, including Egypt and Asia Pacific) and Industrial Services and Other. On April 28, 2010, it acquired BJ Services Company. The company currently has around 56,000 employees.
Weatherford International (NYSE: WFT), one of Baker Hughes' rivals, had failed to meet analysts' Q1 expectations on Monday. Investors will be watching closely if Baker Hughes' Q1 results can avoid the same destiny.
Analysts have very high expectations of Baker Hughes. For the year as a whole, earnings per share is predicted to grow by 71.2% from the previous year's level, while the industry's average is projected to stand at 43.7%. Baker Hughes' revenues, on the other hand, are expected to be 26.1% higher than they were one year ago. Investors might be worried by the fact that analysts have missed all 2010 quarterly results by more than 10%. In three cases, Baker Hughes has managed to outperform market expectations, possibly providing some comfort to investors ahead of tomorrow's report.
