Baker Hughes Inc. Earnings Cheat Sheet: Fifth Consecutive Quarter of Double-Digit Revenue Growth

S&P 500 (NYSE:SPY) component Baker Hughes Inc. (NYSE:BHI) reported higher profit for the second quarter as revenue showed growth. Baker Hughes Inc. provides products and services for the drilling and evaluation of oil and gas wells as well as fluids and chemicals and reservoir technology.

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Baker Hughes Earnings Cheat Sheet for the Second Quarter

Results: Net income for the oil and gas equipment and services company rose to $338 million (77 cents per share) vs. $93 million (23 cents per share) in the same quarter a year earlier. This is a more than threefold rise from the year earlier quarter.

Revenue: Rose 40.5% to $4.74 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: BHI reported adjusted net income of 93 cents per share. By that measure, the company beat the mean estimate of 91 cents per share. It beat the average revenue estimate of $4.53 billion.

Quoting Management: Chad C. Deaton, Baker Hughes chairman and chief executive officer, said, “Our performance was solid this quarter with steady improvement of our international profit margin. As expected, the sequential profit improvement in US Land and the Gulf of Mexico nearly offset the seasonal decline in Canada.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 65.6%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 82.7% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose more than twofold and in the fourth quarter of the last fiscal year, the figure rose more than threefold.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 9 cents in the first quarter, by 19 cents in the fourth quarter of the last fiscal year, and by 9 cents in the third quarter of the last fiscal year.

Margins rose in the first quarter after falling the quarter before. Gross margin rose 0.5 percentage point to 21.6% from the quarter earlier quarter. In the fourth quarter of the last fiscal year, the figure rose two percentage points to 22.7% from the year earlier quarter.

Competitors to Watch: National-Oilwell Varco, Inc. (NYSE:NOV), Weatherford Intl. Ltd. (NYSE:WFT), Newpark Resources, Inc. (NYSE:NR), Halliburton Company (NYSE:HAL), Flotek Industries, Inc. (NYSE:FTK), Oil States Intl., Inc. (NYSE:OIS), Schlumberger Limited. (NYSE:SLB), Bolt Technology Corp. (NASDAQ:BOLT), Cameron Intl. Corp. (NYSE:CAM), and Lufkin Industries, Inc. (NASDAQ:LUFK).

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(Source: Xignite Financials)