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

4-Traders Homepage  >  Equities  >  Nyse  >  Baker Hughes Incorporated    BHI

Delayed Quote. Delayed  - 10/21 08:07:05 pm
52.04 USD   -0.40%
08:09p GLOBAL HORIZONT : Schlumberger, Baker Hughes, GE, Borets, Weatherfor..
04:13pDJMARKET SNAPSHOT : U.S. Stocks Fall As GE Results Outweigh Microsoft'..
02:17p BAKER HUGHES IN : Crude Oil Slips Back Near USD50 Ahead Of US Rig Co..
News SummaryMost relevantAll newsSector news 

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; angel.gonzalez@dowjones.com

--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
08:09p GLOBAL HORIZONTAL SURFACE PUMPS MARK : Schlumberger, Baker Hughes, GE, Borets, W..
04:13pDJMARKET SNAPSHOT : U.S. Stocks Fall As GE Results Outweigh Microsoft's Record
02:17p BAKER HUGHES INCORPORATED : Crude Oil Slips Back Near USD50 Ahead Of US Rig Coun..
01:59p HALLIBURTON : United States v. VA Partners I, LLC, et al.; Public Comment and Re..
01:35p BAKER HUGHES INCORPORATED : Assigned Patent
10/20BAKER HUGHES INCORPORATED : quaterly earnings release
10/19DJHALLIBURTON : Swings to Profit
10/18 BUYINS.NET : BHI SqueezeTrigger Price is $51.75. There is $503,906,317 That Shor..
10/18 BAKER HUGHES INCORPORATED : 3 Oil Companies Will Lose $100M (COP, NOV)
10/17DJOil Prices Drop as Market Awaits OPEC Action
More news
Sector news : Oil Related Services and Equipment - NEC
03:25pDJU.S. HOT STOCKS : Hot Stocks to Watch
10/19DJHALLIBURTON : Swings to Profit
10/19DJHALLIBURTON : Swings to Profit
10/18DJWEATHERFORD INTERNATIONAL : Ernst & Young to Pay $11.8 Million to Settle SEC Cla..
10/04DJGoldman's Vaske Is Leaving
More sector news : Oil Related Services and Equipment - NEC
News from SeekingAlpha
09:55a HALLIBURTON COMPANY : First Benefactor Of Recovering Oil Prices
10/19 Halliburton posts surprise profit as it "relentlessly" manages costs
10/18 CARBO CERAMICS : Is The Final Nail In The Coffin?
10/17 Gorgeous News For Oil
10/17 Avoid Baker Hughes
Financials ($)
Sales 2016 9 950 M
EBIT 2016 -978 M
Net income 2016 -2 222 M
Finance 2016 106 M
Yield 2016 1,31%
P/E ratio 2016 -
P/E ratio 2017
EV / Sales 2016 2,24x
EV / Sales 2017 2,03x
Capitalization 22 358 M
More Financials
Duration : Period :
Baker Hughes Incorporated Technical Analysis Chart | BHI | US0572241075 | 4-Traders
Full-screen chart
Technical analysis trends BAKER HUGHES INCO...
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus OUTPERFORM
Number of Analysts 35
Average target price 53,4 $
Spread / Average Target 2,1%
Consensus details
EPS Revisions
More Estimates Revisions
Martin S. Craighead Chairman & Chief Executive Officer
Belgacem Chariag President-Global Operations
Kimberly A. Ross Chief Financial Officer & Senior Vice President
Archana Deskus Chief Information Officer & Vice President
Larry D. Brady Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
TECHNIP33.79%8 163
More Results