Early on Friday, oilfield services provider Baker Hughes Incorporated (BHI) reported a 33% lower first quarter profit on 2% lower revenues. However, both adjusted net earnings and revenue topped expectations.
The Houston, Texas-based company posted a first quarter net income of $267 million, or 60 cents per share, down from $397 million, or 86 cents per share, earned a year ago.
Adjusting for certain items, which includes a $23 million loss related to Venezuelan currency devaluation, the company posted a net income of $290 million, or 65 cents per share, in the first quarter. This topped Wall Street estimates, as analysts were expecting the company to earn 63 cents per share in the first quarter.
Total quarterly revenue also fell, coming in at $5.23 million from $5.36 billion last year. But again, this topped analysts’ estimates of $5.18 billion.
In the quarter, the company struggled a bit due to a decline in natural gas prices and a temporary slowdown at Gulf of Mexico operations. However. the company said higher drilling activity in Canada helped boost margins, aiding the earnings beat.
Baker Hughes shares were up $1.79, or +4.01%, during pre-market trading on Friday. The stock is up +9.19% year-to-date.
The Bottom Line
Shares of Baker Hughes (BHI) have a dividend yield of 1.35% based on last night’s closing price of $44.60 and the company’s annualized dividend payout of 60 cents per share.
Baker Hughes Incorporated (BHI) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.