NYSE$BKR

Baker Hughes Company · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Baker Hughes reported strong Q4 2022 results with record orders and increased revenue and profitability.

Baker Hughes announced strong results for the fourth quarter of 2022, with record orders of $8.0 billion, a revenue of $5.9 billion, and GAAP operating income of $663 million. The company saw continued margin improvement in Oilfield Services & Equipment (OFSE) and a strong level of orders for Industrial & Energy Technology (IET).

  • Record orders of $8.0 billion, up 32% sequentially and 20% year-over-year.
  • Revenue of $5.9 billion, up 10% sequentially and 8% year-over-year.
  • GAAP operating income of $663 million, up $394 million sequentially and 15% year-over-year.
  • Adjusted earnings per share (non-GAAP) was $0.38.

Headline financials

Total Revenue

$5.91B

Previous: $5.52B+7.0%
EPS (adj)

$0.38

Previous: $0.25+52.0%
Free Cash Flow

$657M

Previous: $645M+1.9%
Net Income

$182M

Previous: $294M-38.1%
Operating Income

$663M

Previous: $574M+15.5%
Gross Profit

$1.34B

Previous: $1.2B+11.0%
Cash & Equivalents

$2.49B

Previous: $3.85B-35.4%
Total Assets

$34.2B

Previous: $35.3B-3.3%
Stock-Based Comp

$52M

Previous: $205M-74.6%

Revenue & EPS history

Baker Hughes · Revenue · Quarterly

$5.91B

Q4 2022+7%vs Q4 2021
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

Baker Hughes · $3.58B total across 1 segment · Q4 2022

  • Oilfield Services
    $3.58B+39.5%

Forward guidance

Baker Hughes anticipates a challenging global economy in 2023 due to inflationary pressures and tightening monetary conditions, but maintains a positive outlook for the energy sector due to persistent supply shortages.

Tailwinds

  • Well positioned to capitalize on growth opportunities across both business segments.
  • Focused on optimizing corporate structure and transforming the organization.
  • Continuing to develop a portfolio of new energy technologies.
  • Generating strong free cash flow.
  • Returning 60 to 80% of free cash flow to shareholders through dividends and share buybacks.

Headwinds

  • Global economy expected to experience challenges under the weight of inflationary pressures and tightening monetary conditions.
  • Recessionary pressures in some of the world’s largest economies.
  • Years of under investment being amplified by recent geopolitical factors.
  • Global spare capacity for oil and gas has deteriorated.
  • Cost inflation in both segments and higher equipment mix in Industrial & Energy Technology.

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 2022

Historical avgQ4 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%

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