Houston, Texas-based Baker Hughes Company (BKR) develops and deploys advanced technologies to serve companies looking for efficient, reliable and cleaner energy solutions. With a market cap of $42.4 billion, Baker Hughes operates as one of the world's largest oilfield service providers. It operates through Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET) segments.
The energy sector giant is set to release its fourth-quarter earnings after the market closes on Thursday, Jan. 30. Ahead of the event, analysts expect Baker Hughes to report a non-GAAP profit of $0.63 per share, up a staggering 23.5% from $0.51 per share reported in the year-ago quarter. Furthermore, the company has surpassed Wall Street’s bottom-line estimates in each of the past four quarters.
For full fiscal 2024, analysts’ expect Baker Hughes to deliver an adjusted EPS of $2.29, representing a staggering 43.1% growth from $1.60 in fiscal 2023. While in 2025, its earnings are expected to grow 12.2% year-over-year to $2.57.
BKR stock has soared 29.9% over the past 52 weeks, outperforming the S&P 500 Index’s ($SPX) 25.8% surge and the Energy Select Sector SPDR Fund’s (XLE) 3.9% gains during the same time frame.
Baker Hughes stock surged over 2.8% in the trading after the release of its mixed Q3 results on Oct. 22. Its total revenues increased 4% year-over-year to $6.9 billion which fell short of Wall Street’s projections. However, Q3 marked another quarter of record EBITDA, highlighting exceptional operational performance in both segments. The company showcased impressive expense discipline which led to a staggering 268 basis points adjusted EBITDA margin expansion compared to the year-ago quarter to 17.5% and a robust 22.9% year-over-year growth in adjusted EBITDA to $1.2 billion.
Furthermore, its adjusted net income to shareholders skyrocketed 56% year-over-year to $666 million. While its adjusted EPS of $0.67 surpassed analysts’ estimates by 11.7% and the company remains confident in achieving its full-year earnings targets.
The consensus opinion on the BKR stock is strongly bullish, with an overall “Strong Buy” rating. Out of the 23 analysts covering the stock, 19 recommend “Strong Buy,” one suggests “Moderate Buy,” and three advise a “Hold” rating. Its mean price target of $47.61 indicates a 9.7% upside potential from current price levels.
