Baker Hughes Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Baker Hughes, Inc. (NYSE:BHI) will unveil its latest earnings on Tuesday, November 1, 2011. Baker Hughes provides products and services for the drilling and evaluation of oil and gas wells as well as fluids and chemicals and reservoir technology.

Baker Hughes, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.21 per share, a rise of more than twofold from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.17. Between one and three months ago, the average estimate moved up. It has risen from $1.20 during the last month. For the year, analysts are projecting profit of $4.37 per share, a rise of 90.8% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 2 cents, coming in at net income of 93 cents a share versus the estimate of profit of 91 cents a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: On average, analysts predict $5.17 billion in revenue this quarter, a rise of 26.7% from the year ago quarter. Analysts are forecasting total revenue of $19.82 billion for the year, a rise of 37.5% from last year’s revenue of $14.41 billion.

Analyst Ratings: 19 out of 23 analysts surveyed (82.6%) have a buy rating on Baker Hughes.. This is below the mean analyst rating of 10 competitors, which average 87.7% buy ratings.

A Look Back: In the second quarter, profit rose more than threefold to $338 million (77 cents a share) from $93 million (23 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 40.5% to $4.74 billion from $3.37 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 70.9%, 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 seen net income rise in three straight quarters. Net income rose more than twofold in the first quarter and more than threefold in the fourth quarter of the last fiscal year.

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).

Stock Price Performance: During August 2, 2011 to October 26, 2011, the stock price had fallen $16.82 (-22.9%) from $73.30 to $56.48. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 7, 2011 when shares rose for nine-straight days, rising 12.1% (+$8.09) over that span. It saw one of its worst periods between July 28, 2011 and August 8, 2011 when shares fell for eight-straight days, falling 26.2% (-$20.43) over that span. Shares are down 33 cents (-0.6%) year to date.

(Source: Xignite Financials)

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