Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Baker Hughes    

Mes dernières consult.
Most popular
News SummaryMost relevantAll newsSector newsTweets

Baker Hughes Cuts 1Q Outlook As Markets Change

share with twitter share with LinkedIn share with facebook
share via e-mail
03/21/2012 | 04:00pm CEST

--Baker Hughes says transition to oil drilling increases costs, weakens prices for its services

--Shares down 3.91%; shares of Halliburton, Nabors Industries also fall

--Baker Hughes reducing capital expenses to adapt to market changes

   By Angel Gonzalez 

Baker Hughes Inc. (>> Baker Hughes Incorporated) expects its first-quarter operating profit to decline from the prior quarter as rapidly changing market conditions have hurt its pressure-pumping product line in North America.

As with other oilfield-services companies, Baker Hughes is facing a difficult adjustment as companies such as Chesapeake Energy Corp. (CHK) retreat from natural gas drilling amid a 10-year low in the commodity's price. The drilling-services provider on Wednesday said the continued shift of U.S. rig activity to oil and liquids-rich basins has decreased fleet utilization, lowered pricing and increased personnel and logistics costs. The market shift has also contributed to shortages of, and higher costs for, critical raw materials, such as gel.

Shares of Baker Hughes recently traded down 3.8% at around $46. The effect of the company's outlook was also felt in the stock of other oilfield-service providers with large exposure to North America. For example, shares of Halliburton Co. (HAL) were down 1.8% at $34.14, and those of Nabors Industries Ltd. (>> Nabors Industries Ltd.) were down 4% at $19.26.

However, many of Baker Hughes's issues are unique to the company, said analysts with Simmons & Co. If Halliburton's stock "gets slammed today, buy it," the analysts said.

Baker Hughes said it now expects first-quarter North America operating profit before tax margin of between 13.2% and 14.2%, compared with 18.7% in the fourth quarter.

For international operations, the company predicts an operating profit before tax margin of 12.2% to 13.2%, compared with 15.6% in the prior quarter, due in part to seasonality of product sales, weather, geographic mix and project delays in Latin America.

The company said it is reviewing its budgets and expects to adjust 2012 capital expenditures for the pressure-pumping product line to align with current market conditions. Simmons analysts said Baker Hughes would eventually succeed in addressing the challenge. "This management team has done it before," the analysts said.

In January, Baker Hughes reported its fourth-quarter earnings fell 6.3%, despite a 22% revenue jump, as it stumbled in serving oil and gas producers racing to drill in increasingly prolific U.S. shale oil fields.

-By Angel Gonzalez, Dow Jones Newswires; 713-547-9214; [email protected]

--Melodie Warner contributed to this article.

Stocks mentioned in the article : Baker Hughes Incorporated, Nabors Industries Ltd.
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on BAKER HUGHES
09/23 BAKER HUGHES : Oil rig count falls a third straight week; Texas up 1
09/23 BAKER HUGHES : A GE Company Awarded Contract by Nigeria LNG in Milestone Digital..
09/22 BAKER HUGHES : Oil rig count falls a third straight week; Texas up 1
09/21 BAKER HUGHES : Patent Issued for Maintaining Tension of a Transmission Line in a..
09/21 BAKER HUGHES : a GE company (BHGE) will provide Asset Performance Management (AP..
09/20 BAKER HUGHES : a GE company awarded contract by Nigeria LNG in milestone digital..
09/20 BAKER HUGHES A GE : BHGE Awarded Contract by Nigeria LNG
09/19 YOKOGAWA ELECTRIC : Baker Hughes, GE Company, KBC, Yokogawa Company Partner to P..
09/19 BAKER HUGHES A GE : BHGE & KBC Partner to Provide Software Solutions to the Oil ..
09/18 BAKER HUGHES A GE : Announces Date for Third Quarter 2017 Earnings Release and W..
More news
News from SeekingAlpha
07/03 GE closes Baker Hughes deal
07/03 Oil Production Took A Tumble
07/01 Stocks to watch next week
06/30 Baker Hughes shareholders OK GE deal; shares +1%
06/28 GENERAL ELECTRIC : Short Interest Spikes 20%. What Gives?
Financials ($)
Sales 2017 20 547 M
EBIT 2017 1 053 M
Net income 2017 261 M
Finance 2017 889 M
Yield 2017 1,72%
P/E ratio 2017 171,48
P/E ratio 2018 26,89
EV / Sales 2017 2,05x
EV / Sales 2018 1,76x
Capitalization 42 966 M
Duration : Period :
Baker Hughes Technical Analysis Chart | US0572241075 | 4-Traders
Technical analysis trends BAKER HUGHES
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 31
Average target price 48,4 $
Spread / Average Target 29%
EPS Revisions
Lorenzo Simonelli President, Chief Executive Officer & Director
Jeffrey R. Immelt Chairman
Belgacem Chariag Chief Global Operations Officer
Brian Worrell Chief Financial Officer
Derek Mathieson Chief Marketing & Technology Officer
Sector and Competitors
1st jan.Capitalization (M$)
BAKER HUGHES-11.22%42 966
SCHLUMBERGER NV-18.89%96 432
BAKER HUGHES A GE CO-43.70%42 966
TECHNIPFMC-23.42%12 418