NYSE$BKR

Baker Hughes Company · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Baker Hughes's financial performance declined year-over-year but increased sequentially, driven by higher revenue in Turbomachinery & Process Solutions and Digital Solutions. The company generated significant free cash flow and progressed on strategic initiatives despite challenging market conditions.

Baker Hughes announced Q4 2020 results with revenue of $5.5 billion, down 13% year-over-year. GAAP diluted earnings per share was $0.91, while adjusted diluted loss per share was $(0.07). The company generated $378 million in cash flow from operating activities and $250 million in free cash flow.

  • Orders were $5.2 billion, up 2% sequentially but down 25% year-over-year.
  • Revenue was $5.5 billion, up 9% sequentially but down 13% year-over-year.
  • GAAP operating income was $182 million, down 45% year-over-year.
  • Free cash flow was $250 million for the quarter.

Headline financials

Total Revenue

$5.5B

Previous: $6.35B-13.4%
EPS (adj)

-$0.07

Previous: $0.27-125.9%
Free Cash Flow

$250M

Previous: $1.05B-76.3%
Net Income

$653M

Previous: $48M+1260.4%
Operating Income

$182M

Previous: $331M-45.0%
Gross Profit

$1.01B

Previous: $1.3B-22.1%
Cash & Equivalents

$4.13B

Previous: $3.25B+27.2%
Total Assets

$38B

Previous: $53.4B-28.7%
Stock-Based Comp

$210M

No prior period

Revenue & EPS history

Baker Hughes · Revenue · Quarterly

$5.5B

Q4 2020-13.4%vs Q4 2019
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Baker Hughes · $2.28B total across 1 segment · Q4 2020

  • Oilfield Services
    $2.28B-30.7%

Forward guidance

Baker Hughes anticipates a tepid investment environment for oil and gas in the first half of 2021, with spending and activity levels expected to gain momentum throughout the year, setting up the industry for stronger growth in 2022.

Tailwinds

  • Global economy and oil demand will begin to recover from the impact of the global pandemic.
  • Spending and activity levels to gain momentum through the year as the macro environment improves.
  • Industry is likely setting up for stronger growth in 2022.
  • Baker Hughes is well placed to navigate the current market environment.
  • Baker Hughes is positioned to lead the energy transition.

Headwinds

  • Tepid investment environment for oil and gas during the first half of 2021.
  • Continued spread of COVID-19 virus.
  • Continuation of measures to try to contain the virus, such as travel bans and restrictions, quarantines, shelter in place orders, and shutdowns.
  • Failure to successfully eliminate dependencies on GE.
  • Failure by GE to supply products and services in accordance with applicable contractual terms.

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 Q4 2020

Historical avgQ4 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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