NYSE$BKR

Baker Hughes Company · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Baker Hughes reported solid results despite continued uncertainty in global oil and gas markets and the ongoing impact of the COVID-19 pandemic.

Baker Hughes announced Q3 2020 results with revenue of $5.0 billion, up 7% sequentially and down 14% year-over-year. The company reported a GAAP operating loss of $49 million and adjusted earnings per share of $0.04. They generated $219 million in cash flow from operating activities and $52 million in free cash flow.

  • Orders of $5.1 billion for the quarter, up 4% sequentially and down 34% year-over-year.
  • Revenue of $5.0 billion for the quarter, up 7% sequentially and down 14% year-over-year.
  • GAAP operating loss of $49 million for the quarter, up 6% sequentially and unfavorable year-over-year.
  • Adjusted earnings per share (a non-GAAP measure) was $0.04.

Headline financials

Total Revenue

$5.05B

Previous: $5.88B-14.2%
EPS (adj)

$0.04

Previous: $0.21-81.0%
Free Cash Flow

-$170M

Previous: $57M-398.2%
Net Income

-$170M

Previous: $57M-398.2%
Operating Income

-$49M

Previous: $297M-116.5%
Gross Profit

-$42M

Previous: $1.1B-103.8%
Cash & Equivalents

$4.06B

Previous: $2.81B+44.6%
Total Assets

$37.3B

Previous: $52.5B-28.9%

Revenue & EPS history

Baker Hughes · Revenue · Quarterly

$5.05B

Q3 2020-14.2%vs Q3 2019
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Baker Hughes · $2.31B total across 1 segment · Q3 2020

  • Oilfield Services
    $2.31B

Forward guidance

Baker Hughes is focused on improving margin and return profile while executing long-term strategy to evolve portfolio along with the energy landscape, remaining committed to leading the energy transition and becoming a key enabler to decarbonizing oil and gas and other industries.

Tailwinds

  • On track to hit goals of right-sizing the business.
  • Generating free cash flow.
  • Achieving $700 million in annualized cost savings by year end.
  • Intensely focused on improving the margin and return profile of Baker Hughes despite the near-term macro volatility.
  • Executing on long-term strategy to evolve our portfolio along with the energy landscape.

Headwinds

  • Continued uncertainty in global oil and gas markets.
  • Ongoing impact of the COVID-19 pandemic.
  • Demand recovery is beginning to level off.
  • Significant excess capacity remains, which could create volatility in the future.
  • Near-term macro 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 Q3 2020

Historical avgQ3 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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