NYSE$BKR

Baker Hughes Company · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Baker Hughes' first quarter 2023 results were announced, demonstrating growth in orders and revenue.

Baker Hughes reported strong first quarter 2023 results, with orders up 12% year-over-year and revenue up 18% year-over-year. The company's performance was driven by strong order momentum in IET and SSPS and solid operating results in both business segments.

  • Orders increased by 12% year-over-year, reaching $7.6 billion.
  • Revenue increased by 18% year-over-year, reaching $5.7 billion.
  • GAAP operating income increased by $160 million year-over-year, reaching $438 million.
  • GAAP diluted earnings per share was $0.57, including $0.28 per share of adjusting items.

Headline financials

Total Revenue

$5.72B

Previous: $4.84B+18.2%
EPS (adj)

$0.28

Previous: $0.15+86.7%
Free Cash Flow

$576M

Previous: $72M+700.0%
Net Income

$576M

Previous: $72M+700.0%
Operating Income

$438M

Previous: $279M+57.0%
Gross Profit

-$18M

No prior period
Cash & Equivalents

$2.42B

Previous: $3.19B-24.3%
Total Assets

$35B

Previous: $35B+0.1%

Revenue & EPS history

Baker Hughes · Revenue · Quarterly

$5.72B

Q1 2023+18.2%vs Q1 2022
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

Baker Hughes · $3.58B total across 1 segment · Q1 2023

  • Oilfield Services
    $3.58B+43.7%

Forward guidance

Baker Hughes remains optimistic on the outlook for 2023, expecting the current environment to remain unique, with a spending cycle that is more durable and less sensitive to commodity price swings. The company is also focused on transforming operationally and positioning itself for growth in the energy and industrial markets.

Tailwinds

  • Strong order momentum in IET and SSPS.
  • Solid operating results at the high end of guidance in both business segments.
  • Booked almost $300 million of New Energy orders.
  • Generated approximately $200 million of free cash flow.
  • Spending cycle is more durable and less sensitive to commodity price swings.

Headwinds

  • Macro volatility.
  • Cost inflation in both segments.
  • Higher equipment mix in Industrial & Energy Technology.
  • Higher R&D spend in Industrial & Energy Technology.
  • Unfavorable mix as a result of higher Gas Technology - Equipment growth.

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 2023

Historical avgQ1 2023

+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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