NYSE$BKR

Baker Hughes Company · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Baker Hughes' Q1 2024 results showcased strong revenue growth and solid profitability.

Baker Hughes reported a positive start to 2024, achieving solid first-quarter results that align with their full-year guidance. The company saw a 12% year-over-year increase in revenue, driven by higher volume in both IET and OFSE. Adjusted EPS grew by 50% year-over-year, and free cash flow exceeded $500 million. The company also increased its quarterly dividend by one penny to 21 cents, representing an 11% increase year-over-year.

  • Orders totaled $6.5 billion, including $2.9 billion from IET.
  • Revenue reached $6.4 billion, a 12% increase year-over-year.
  • Net income attributable to the company was $455 million.
  • Free cash flow was $502 million and returns to shareholders totaled $368 million, including $158 million in share repurchases.

Headline financials

Total Revenue

$6.42B

Previous: $5.72B+12.3%
EPS

$0.45

Previous: $0.28+60.7%
Orders

$6.54B

No prior period
Adjusted EBITDA

$943M

No prior period
Cash Flow from Ops

$784M

No prior period
Adjusted Net Income

$429M

No prior period
Capital Expenditures

-$333M

No prior period
Free Cash Flow

$455M

Previous: $576M-21.0%
Net Income

$455M

Previous: $576M-21.0%
Operating Income

$653M

Previous: $438M+49.1%
Gross Profit

$27M

Previous: -$18M+250.0%
Total Assets

$37.1B

Previous: $35B+6.0%

Revenue & EPS history

Baker Hughes · Revenue · Quarterly

$6.42B

Q1 2024+12.3%vs Q1 2023
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

Baker Hughes · $3.95B total across 1 segment · Q3 2023

  • Oilfield Services
    $3.95B+39.0%

Forward guidance

Baker Hughes anticipates achieving its full-year guidance, building on momentum from the previous year, underpinned by strong orders and operational performance.

Tailwinds

  • Strong first quarter operating results, highlighted by 50% year-over-year Adjusted EPS growth.
  • Exceeded the midpoint of EBITDA margin guidance, driven by outstanding operational performance in the IET segment.
  • Booked $239 million of new energy orders.
  • Generated more than $500 million of free cash flow.
  • Increased quarterly dividend by one penny to 21 cents, representing an 11% increase year-over-year.

Headwinds

  • Impact of worldwide economic conditions and rising inflation
  • Declines in credit availability may have on worldwide economic growth and demand for hydrocarbons
  • Foreign currency exchange fluctuations and changes in the capital markets in locations where we operate
  • Impact of government disruptions and sanctions
  • Our ability to execute on orders and RPO in accordance with agreed specifications, terms and conditions and convert those orders and RPO to revenue and cash.

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 2024

Historical avgQ1 2024

+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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