Baker Hughes Q3 net income down by a third on Chart deal costs despite revenue, adj EPS beat

Overview

• Oilfield services and energy tech firm's Q3 revenue rose 14% yr/yr, beating analyst expectations

• Adjusted EPS for Q3 up 2% yr/yr (excluding $143 million of Chart intangible amortization), beating analyst expectations

• Net income attributable down by a third yr/yr

• Company completed acquisition of Chart Industries, expanding portfolio and aftermarket opportunities

Outlook

• Baker Hughes raises full-year IET order outlook to over $50 bln

• Company sees continued strong demand in data centers, LNG and gas infrastructure

• Baker Hughes expects growth from energy security, AI demand and emerging markets

Result Drivers

• CHART ACQUISITION - Co said higher revenue and adjusted earnings were mainly driven by the Chart acquisition

• HIGHER VOLUME AND PRICE - Co said increased volume and pricing contributed to improved adjusted net income and EBITDA

• COST-OUT INITIATIVES - Co said cost-out initiatives supported year-over-year growth in adjusted net income and EBITDA

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy"

• Wall Street's median 12-month price target for Baker Hughes Company is $72.50, about 29.4% above its October 26 closing price of $56.01

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads

• Oct 26 - EQT to buy Range Resources in $13 billion deal to create top US gas producer

• Oct 27 - Natgas producer EQT's Q3 profit beats expectations on lower operating costs

• Oct 26 - Verizon lifts annual forecasts, signs more than $2 billion AI infrastructure deal with AWS

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)