Baker Hughes (NYSE:BHI) saw its profit climb in the second quarter, exceeding Street expectations.
Earnings and Revenue The company experienced stronger-than-expected EPS and revenues. The company reported EPS of $1 a share versus the 78 cents a share estimate and revenues of $5.33 billion versus the $5.26 billion estimate. The company's reported EPS came in above the high estimate of 19 analysts of a profit of 81 cents.
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The company's net income for the quarter was $439 million. This is 29.9% higher than the year-ago quarter. Revenue climbed 12.3% from $4.74 billion in the same period last year.
Company Fundamental Trends Last quarter's profit boost ends a two-quarter streak of year-over-year profit decreases. The company has averaged revenue growth of 24% over the past five quarters.
History Against Expectations The company has managed to top estimates the last two quarters. In the first quarter, it beat expectations with net income of 86 cents versus a mean estimate of net income of 83 cents per share.
Official Comment: "Baker Hughes delivered improved results in the second quarter," said Martin Craighead, Baker Hughes President and Chief Executive Officer. "We achieved two percent sequential growth in operating income despite challenging market conditions in North America. The impact on margins from the seasonal slowdown in Canada was mostly offset by improved results in onshore U.S. The initiatives to improve our Pressure Pumping business helped stabilize its results this quarter by offsetting the higher costs for certain raw materials and the weaker market conditions for Pressure Pumping. Our International business delivered improved revenue and operating profit, driven primarily by outstanding performance in Europe and the Middle East."
Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.