NYSE$BKR

Baker Hughes Company · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Baker Hughes's financial performance declined due to the impact of the COVID-19 pandemic and lower oil and gas prices.

Baker Hughes reported a challenging second quarter of 2020, with a decline in orders and revenue compared to the previous quarter and the same quarter last year. The company navigated through the ongoing impacts of the COVID-19 pandemic and the sharp decline in activity levels due to lower oil and gas prices.

  • Orders were down 12% sequentially and 25% year-over-year.
  • Revenue was down 13% sequentially and 21% year-over-year.
  • GAAP operating loss was $52 million.
  • Adjusted loss per share was $(0.05).

Headline financials

Total Revenue

$4.74B

Previous: $5.99B-21.0%
EPS (adj)

-$0.05

Previous: $0.20-125.0%
Free Cash Flow

-$201M

Previous: -$9M-2133.3%
Net Income

-$201M

Previous: -$9M-2133.3%
Operating Income

-$52M

Previous: $271M-119.2%
Gross Profit

-$16M

Previous: $1.06B-101.5%
Cash & Equivalents

$4.13B

Previous: $3.14B+31.7%
Total Assets

$37.5B

Previous: $52.9B-29.0%

Revenue & EPS history

Baker Hughes · Revenue · Quarterly

$4.74B

Q2 2020-21%vs Q2 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

Baker Hughes · $2.41B total across 1 segment · Q2 2020

  • Oilfield Services
    $2.41B

Forward guidance

Baker Hughes is preparing for potential future volatility, while also focusing on structurally reducing their cost base and implementing a number of strategic initiatives across all of their product companies. They are on track to hit their goals of structurally right-sizing their business and achieving the $700 million in annualized cost savings by year end.

Tailwinds

  • Majority of lockdowns have been easing globally and economic activity likely troughed during the second quarter.
  • Executing on the framework laid out on first quarter earnings call.
  • On track to hit goals of structurally right-sizing business.
  • Achieving the $700 million in annualized cost savings by year end.
  • Committed to strategy, maintaining focus on higher-margin and differentiated portfolio offerings.

Headwinds

  • Risk of a second wave of virus cases.
  • Reinstitution of select lockdowns.
  • Risk of lingering high unemployment.
  • Uncertain economic environment that likely persists through the rest of 2020.
  • Preparing for potential future volatility.

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 Q2 2020

Historical avgQ2 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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