Shares of Baker Hughes (NYSE:BHI) soared 9% Friday after the oilfield services supplier reported better-than-expected second-quarter profits.
Baker Hughes posted net income of $438 million, or a dollar a share, in its latest period, compared with a year-earlier $335 million, or 78 cents. The results trumped average analyst estimates of 77 cents in a Thomson Reuters poll.
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Revenue for the three months ended June 30 was up 12% to $5.33 billion from $4.7 billion a year ago, topping the Street’s view of $5.26 billion.
“We achieved 2 percent sequential growth in operating income despite challenging market conditions in North America,” Baker Hughes CEO Martin Craighead said in a statement.
The seasonal slowdown in Canada was mostly offset by improved results in onshore U.S., improved activity in Europe and the Middle East and efforts to improve the pressure pumping business, which offset higher raw material costs, the company said.
Looking ahead, Craighead said Baker Hughes is “cautiously optimistic about the market outlook” for the remaining of the year.
If commodity prices remain at current levels, the company expects onshore U.S. markets to remain stable and Gulf of Mexico and International markets to expand.