NYSE$BKR

Baker Hughes Company · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Baker Hughes reported strong Q3 2023 results with increased orders, revenue, and net income compared to the previous year.

Baker Hughes announced positive third-quarter results, marked by a 40% increase in orders year-over-year, a 24% increase in revenue, and a significant rise in net income. The company saw strong performance in both Industrial & Energy Technology (IET) and Oilfield Services & Equipment (OFSE), driven by key contracts and overall market improvements.

  • Orders increased by 40% year-over-year, reaching $8.5 billion.
  • Revenue increased by 24% year-over-year to $6.6 billion.
  • Net income attributable to Baker Hughes Company was $518 million, a significant increase year-over-year.
  • Free cash flow for the quarter was $592 million.

Headline financials

Total Revenue

$6.64B

Previous: $5.37B+23.7%
EPS (adj)

$0.42

Previous: $0.26+61.5%
Free Cash Flow

$518M

Previous: -$17M+3147.1%
Net Income

$518M

Previous: -$17M+3147.1%
Operating Income

$714M

Previous: $269M+165.4%
Gross Profit

$66M

Previous: -$31M+312.9%
Cash & Equivalents

$3.2B

Previous: $2.85B+12.3%
Total Assets

$36.6B

Previous: $33.2B+10.2%

Revenue & EPS history

Baker Hughes · Revenue · Quarterly

$6.64B

Q3 2023+23.7%vs Q3 2022
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

Baker Hughes · $3.95B total across 1 segment · Q3 2023

  • Oilfield Services
    $3.95B+39.0%

Forward guidance

Baker Hughes remains optimistic about the outlook, anticipating continued growth across both segments, irrespective of the pace of energy transition. The company is focused on enhancing its position as a leading energy technology company and laying the foundation for durable earnings and free cash flow growth.

Tailwinds

  • Positive momentum across the portfolio.
  • Oil prices have rebounded.
  • Global LNG market remains fundamentally tight.
  • Strong LNG project pipeline.
  • Unique portfolio is set to benefit irrespective of the pace of development.

Headwinds

  • Persisting global economic uncertainty.
  • Economic softness.
  • LNG price spikes.
  • Middle East conflict.
  • Strikes by LNG workers in Australia.

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 2023

Historical avgQ3 2023

+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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