NYSE$BKR

Baker Hughes Company · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Announced second quarter 2021 results, showing sequential and year-over-year growth in orders and revenue.

Baker Hughes reported a strong second quarter of 2021, with orders reaching $5.1 billion, up 12% sequentially and 4% year-over-year, and revenue of $5.1 billion, up 8% sequentially and 9% year-over-year. The company generated significant free cash flow and continued to execute its strategy, investing in new energy frontiers and advancing partnerships in hydrogen, carbon capture, utilization and storage, and clean integrated power.

  • Orders increased by 12% sequentially and 4% year-over-year, reaching $5.1 billion.
  • Revenue increased by 8% sequentially and 9% year-over-year, reaching $5.1 billion.
  • GAAP operating income increased by 18% sequentially and was favorable year-over-year, reaching $194 million.
  • Adjusted EBITDA increased by 9% sequentially and 38% year-over-year, reaching $611 million.

Headline financials

Total Revenue

$5.14B

Previous: $4.74B+8.6%
EPS (adj)

$0.10

Previous: -$0.05+300.0%
Free Cash Flow

-$68M

Previous: -$201M+66.2%
Net Income

-$68M

Previous: -$201M+66.2%
Operating Income

$194M

Previous: -$52M+473.1%
Gross Profit

$0.00

Previous: -$16M+100.0%
Cash & Equivalents

$3.91B

Previous: $4.13B-5.3%
Total Assets

$36.7B

Previous: $37.5B-2.3%

Revenue & EPS history

Baker Hughes · Revenue · Quarterly

$5.14B

Q2 2021+8.6%vs Q2 2020
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Baker Hughes · $2.36B total across 1 segment · Q2 2021

  • Oilfield Services
    $2.36B-2.2%

Forward guidance

Baker Hughes anticipates continued global economic recovery driving demand for oil and natural gas in the second half of 2021. Despite risks from COVID-19 variants, spending and activity levels are expected to gain momentum, setting up the industry for stronger growth in 2022.

Tailwinds

  • Continued signs of global economic recovery should drive further demand growth for oil and natural gas.
  • Spending and activity levels are expected to gain momentum through the year as the macro environment improves.
  • The industry is likely setting up for stronger growth in 2022.
  • Focused on executing strategy as the macro economy improves.
  • Customers continue on their journey to a net-zero future.

Headwinds

  • Risks presented by the variant strains of the COVID-19 virus are recognized.
  • Potential for continued spread of the COVID-19 virus and the continuation of the measures to try to contain the virus.
  • Restructuring plans may not be successful and achieve the expected result.
  • Continued deterioration of market conditions, whether due to the continued spread of COVID-19 or other events could result in further restructuring costs and impairments.
  • Failure to successfully eliminate dependencies on GE or a failure by GE to supply products and services to us in accordance with applicable contractual terms could have a material effect on our business.

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 2021

Historical avgQ2 2021

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro