NYSE$BKR

Baker Hughes Company · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Baker Hughes announced third quarter results with increased revenue and adjusted operating income.

Baker Hughes reported a mixed Q3 2022, demonstrating strong performance in Oilfield Services (OFS) and order growth, but also facing challenges in Turbomachinery & Process Solutions (TPS). The company is restructuring into two segments, OFSE and IET, to improve focus and execution. They remain positive on the outlook for oil and gas, and anticipate growth in clean energy development due to recent policy changes.

  • Orders were up 3% sequentially and 13% year-over-year.
  • Revenue increased 6% sequentially and 5% year-over-year.
  • GAAP operating income increased sequentially but decreased year-over-year.
  • Adjusted EPS was $0.26.

Headline financials

Total Revenue

$5.37B

Previous: $5.09B+5.4%
EPS (adj)

$0.26

Previous: $0.16+62.5%
Free Cash Flow

-$17M

Previous: $8M-312.5%
Net Income

-$17M

Previous: $8M-312.5%
Operating Income

$269M

Previous: $378M-28.8%
Gross Profit

-$31M

Previous: $0.00
Cash & Equivalents

$2.85B

Previous: $3.93B-27.4%
Total Assets

$33.2B

Previous: $35.8B-7.3%

Revenue & EPS history

Baker Hughes · Revenue · Quarterly

$5.37B

Q3 2022+5.4%vs Q3 2021
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

Baker Hughes · $2.84B total across 1 segment · Q3 2022

  • Oilfield Services
    $2.84B+17.5%

Forward guidance

Baker Hughes is preparing for various economic scenarios, focusing on factors within their control. They've restructured into OFSE and IET segments to improve focus and profitability. The company aims to capitalize on changing energy markets and increase shareholder value through investments in new energy and long-term growth.

Tailwinds

  • Positive outlook for oil and gas with supportive fundamentals for a multi-year upturn in global upstream spending.
  • Elevated natural gas and LNG pricing remains constructive for future FIDs.
  • Policy movements in Europe and the U.S. are likely to support a significant increase in clean energy development.
  • Restructuring designed to simplify operations, enhance profitability, and drive growth.
  • Focus on meeting customer needs and producing solutions in the rapidly evolving energy and industrial markets.

Headwinds

  • Macro outlook has grown increasingly uncertain due to strong inflationary pressures.
  • Rising interest rate environment.
  • Sizeable fluctuations in global currencies.
  • Key challenges in 2022.
  • Dynamic macro backdrop.

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 2022

Historical avgQ3 2022

+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