NYSE$BKR

Baker Hughes Company · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Announced results for the first quarter of 2020.

Baker Hughes reported a revenue of $5.4 billion for the quarter, a decrease of 3% year-over-year. The GAAP operating loss was $16,059 million, while the adjusted operating income was $240 million. The company generated $152 million in free cash flow. The GAAP diluted loss per share was $(15.64), and the adjusted diluted earnings per share were $0.11.

  • Orders of $5.5 billion, down 20% sequentially and down 3% year-over-year.
  • Revenue of $5.4 billion, down 15% sequentially and down 3% year-over-year.
  • GAAP operating loss of $16,059 million, down sequentially and year-over-year.
  • Adjusted operating income (non-GAAP) of $240 million, down 56% sequentially and down 12% year-over-year.

Headline financials

Total Revenue

$5.43B

Previous: $5.62B-3.4%
EPS (adj)

$0.11

Previous: $0.15-26.7%
Free Cash Flow

-$10.2B

Previous: $32M-32006.3%
Net Income

-$10.2B

Previous: $32M-32006.3%
Operating Income

-$16.1B

Previous: $176M-9224.4%
Gross Profit

-$160M

Previous: $0.00
Cash & Equivalents

$3.01B

Previous: $3.07B-2.1%
Total Assets

$37.2B

Previous: $53.1B-29.9%

Revenue & EPS history

Baker Hughes · Revenue · Quarterly

$5.43B

Q1 2020-3.4%vs Q1 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

Baker Hughes · $3.14B total across 1 segment · Q1 2020

  • Oilfield Services
    $3.14B

Forward guidance

The outlook for oil and gas demand and supply appears equally uncertain, and it will largely be driven by the pace of economic recovery from the COVID-19 pandemic and the supply response that ultimately materializes. Baker Hughes has taken decisive actions in an effort to cut costs, accelerate structural changes, and deploy technology and optimize processes that can lower costs for customers.

Tailwinds

  • Strong backlog of longer-cycle projects and aftermarket services provides greater stability.
  • Committed to delivering critical technology that helps customers operate more efficiently.
  • Reducing capital expenditures by more than 20% versus 2019.
  • Executing a restructuring plan to right size operations.
  • Continuing to deliver on portfolio evolution strategy.

Headwinds

  • Volatile macro environment driven by a significant decline in oil prices.
  • Sudden demand shock from COVID-19.
  • Rising global oil supply.
  • Challenging market environment.
  • Shorter-cycle businesses encounter pressure from the dramatic declines in activity.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.5%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+1.6%

Avg return

30 days after

58%

31 / 53 earnings

Positive

+8.1%

Q3 2013

Best reaction

-11.7%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.2%+6.7%+2.4%
Q4 2025+4.3%+3.9%+20.2%
Q3 2025-3.2%-1.2%-0.0%
Q2 2025-1.0%-0.9%+7.5%
Q1 2025-6.4%-5.6%-4.2%
Q4 2024+3.5%+9.5%-0.0%
Q3 2024+1.5%+2.9%+23.1%
Q2 2024+7.9%+9.6%+0.9%
Q1 2024+0.6%+1.2%-2.0%
Q4 2023-3.0%-1.6%-5.7%
Q3 2023+1.6%+1.4%-1.7%
Q2 2023-1.1%+2.3%+0.6%
Q1 2023+2.0%+2.3%-4.5%
Q4 2022-3.0%+0.7%-3.3%
Q3 2022+7.3%+8.1%+20.5%
Q2 2022-11.7%-13.5%-10.8%
Q1 2022-10.4%-16.3%-6.0%
Q4 2021+3.6%+6.2%+10.7%
Q3 2021-9.7%-6.4%-16.1%
Q2 2021-0.8%+4.2%+1.9%
Q1 2021+1.6%+3.2%+30.9%
Q4 2020-3.1%-10.0%+2.2%
Q3 2020+6.1%+2.0%+33.6%
Q2 2020+2.3%+0.1%-5.3%
Q1 2020+6.4%+6.7%+18.6%
Q4 2019+1.0%-3.0%-9.7%
Q3 2019-2.3%+2.1%+2.4%
Q2 2019+3.1%-2.9%-11.5%
Q1 2019-9.3%-7.1%-18.5%
Q4 2018+1.7%+4.6%+13.2%
Q3 2018+0.4%-2.0%-13.1%
Q2 2018+2.3%+4.7%-2.4%
Q1 2018+3.7%+4.2%+6.4%
Q4 2017-9.8%-12.3%-21.7%
Q3 2017-5.1%-9.3%-6.8%
Q2 2017+2.0%-2.2%-8.0%
Q1 2017+1.4%+1.2%-6.5%
Q4 2016-0.8%-0.8%-6.0%
Q3 2016+5.0%+13.4%+18.9%
Q2 2016+7.4%+4.8%+14.2%
Q1 2016+4.5%
Q4 2015+6.6%
Q3 2015+4.5%
Q2 2015-2.0%
Q1 2015-1.9%
Q4 2014+3.1%
Q3 2014-0.9%
Q2 2014-1.5%
Q1 2014+5.9%
Q4 2013+4.9%
Q3 2013+8.1%
Q2 2013-0.6%
Q1 2013-2.6%

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