Market Overview

Earnings Outlook for Baker Hughes

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On Wednesday, October 21, Baker Hughes (NYSE: BKR) will release its latest earnings report. Decipher the announcement with Benzinga's help.

The Definitions Of Net Income, Earnings, And Earnings Per Share (EPS)

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Baker Hughes earnings will be near $0.04 per share on sales of $4.78 billion, according to analysts. Baker Hughes reported a per-share profit of $0.21 when it published results during the same quarter last year. Sales in that period totaled $5.88 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a given company yields the "consensus estimates." If the company posts earnings or revenue above or below the consensus estimate, the stock may move by a considerable margin.

The analyst consensus estimate would represent a 80.95% decrease in the company's earnings. Revenue would be down 18.74% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0 0.11 0.31 0.24
EPS Actual -0.05 0.11 0.27 0.21
Revenue Estimate 4.80 B 5.63 B 6.47 B 6.11 B
Revenue Actual 4.74 B 5.42 B 6.35 B 5.88 B

Stock Performance

Shares of Baker Hughes were trading at $13.11 as of October 19. Over the last 52-week period, shares are down 41.91%. Given that these returns are generally negative, long-term shareholders are probably down going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Baker Hughes is scheduled to hold the call at 09:00:00 ET and can be accessed here: https://edge.media-server.com/mmc/p/b52o5gq3

 

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Posted-In: Earnings