NYSE$BKR

Baker Hughes Company · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Baker Hughes' performance reflected a strong orders quarter and growth in adjusted EBITDA and adjusted Operating Income margin rate, with mixed results across segments.

Baker Hughes announced mixed results for Q3 2021. The company reported revenue of $5.1 billion, up 1% year-over-year, and GAAP operating income of $378 million, up 95% sequentially. Adjusted EPS was $0.16. The company generated $416 million in cash flow from operating activities and $305 million in free cash flow.

  • Orders were up 6% sequentially and up 5% year-over-year.
  • Revenue was down 1% sequentially and up 1% year-over-year.
  • GAAP operating income was up 95% sequentially and favorable year-over-year.
  • Adjusted EBITDA was up 9% sequentially and up 21% year-over-year.

Headline financials

Total Revenue

$5.09B

Previous: $5.05B+0.9%
EPS (adj)

$0.16

Previous: $0.04+300.0%
Free Cash Flow

$8M

Previous: -$170M+104.7%
Net Income

$8M

Previous: -$170M+104.7%
Operating Income

$378M

Previous: -$49M+871.4%
Gross Profit

$0.00

Previous: -$42M+100.0%
Cash & Equivalents

$3.93B

Previous: $4.06B-3.3%
Total Assets

$35.8B

Previous: $37.3B-4.2%

Revenue & EPS history

Baker Hughes · Revenue · Quarterly

$5.09B

Q3 2021+0.9%vs Q3 2020
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Baker Hughes · $2.42B total across 1 segment · Q3 2021

  • Oilfield Services
    $2.42B+4.8%

Forward guidance

Baker Hughes sees continued signs of global economic recovery that should drive further demand growth for oil and natural gas in 2021 and into 2022. However, the pace of growth is being hampered by the COVID-19 Delta variant, global chip shortages, supply chain issues, and energy supply constraints.

Tailwinds

  • Continued signs of global economic recovery
  • Further demand growth for oil and natural gas
  • Favorable outlook for the oil market, aided by continued spending discipline by the world’s largest producers
  • Natural gas and LNG fundamentals remain strong
  • Positive case for structural demand growth in natural gas as part of the broader energy transition is becoming increasingly evident

Headwinds

  • Pace of growth is being hampered by the COVID-19 Delta variant
  • Global chip shortages
  • Supply chain issues
  • Energy supply constraints
  • Global growth appears to be on relatively solid footing

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 2021

Historical avgQ3 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%

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