Baker Hughes Earnings: 2012 Was a Record Revenue Year

Baker Hughes Incorporated (NYSE:BHI) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.15%.

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Baker Hughes Incorporated Earnings Cheat Sheet

Results: Net income decreased -32.8% to $211 million (48 cents per diluted share) in the quarter versus a net gain of $314 million in the year-earlier quarter.

Revenue: Decreased 3.1% to $5.22 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Baker Hughes Incorporated reported adjusted net income of 48 cents per share. By that measure, the company missed the mean analyst estimate of $0.61. It beat the average revenue estimate of $5.2 billion.

Quoting Management: “In 2012 we posted record revenue, with growth coming from all operating segments,” said Martin Craighead, Baker Hughes President and Chief Executive Officer…

…Our international operations increased revenue by 11%, despite only a 2% rise in the international rig count during the year.  We’ve built a strong position in many of the world’s offshore markets and significantly expanded our Integrated Operations business in the Middle East.  In North America, our business grew by 5%, based largely on the successful introduction of several well construction technologies, and strong demand for our production product lines in the growing unconventional market.”

Key Stats:

Revenue decreased 0.15% from $5.23 billion in the previous quarter. Net income decreased 24.37% from $279 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.78 to a profit $0.63. For the current year, the average estimate has moved down from a profit of $3.39 to a profit of $3.18 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)