{"id":38383,"date":"2023-07-20T19:24:11","date_gmt":"2023-07-20T23:24:11","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/baker-hughes-stock-perhaps-time-to-take-some-profit-nasdaqbkr\/"},"modified":"2023-07-20T19:24:14","modified_gmt":"2023-07-20T23:24:14","slug":"baker-hughes-stock-perhaps-time-to-take-some-profit-nasdaqbkr","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=38383","title":{"rendered":"Baker Hughes Stock: Perhaps Time To Take Some Profit (NASDAQ:BKR)"},"content":{"rendered":"
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Introduction<\/h2>\n

Baker Hughes Company<\/strong> (NASDAQ:BKR<\/span>) released its second quarter 2023 results on July 19, 2023.<\/p>\n

Note:<\/strong> This article updates my June 27, 2023 article. I have followed BKR on Seeking Alpha since December 2020.<\/p>\n

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Baker Hughes\u2019 unique portfolio enables us to weather a choppy macro environment. We have a diverse mix of long and short cycle businesses with leading technologies that play across value chains within today\u2019s energy and industrial complex, and are well positioned to play a leading role into the future. (conference call)<\/span><\/p>\n<\/blockquote>\n

1 – Second Quarter 2023 Results Snapshot<\/h3>\n

The company reported Second-quarter 2023 adjusted earnings of $0.39 per share<\/strong>, beating analyst expectations this quarter against $0.11 last year. Total quarterly revenues of $6,315 million<\/strong> were above expectations, with consolidated orders of $7,474 million.<\/p>\n

The stronger-than-expected quarterly results were due to higher contributions from the Oilfield Services and Equipment and Industrial and energy Technology business units.<\/span><\/p>\n

However, Halliburton, which released its 2Q23 results as well, warned that weaker oil and gas prices had pushed U.S. shale producers to slash the number of active rigs by 11%<\/strong> in 2Q23, reducing the need for drilling equipment and services, indicating a possible peak in demand.<\/p>\n

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Rival Baker Hughes also indicated it was seeing a decline, with CEO Lorenzo Simonelli noting that North American business is \u201cleveling off,\u201d with some customers even asking for discounts.<\/p>\n<\/blockquote>\n

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\"Table\"<\/span>
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BKR 2Q23 Highlight (BKR Presentation)<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n

CEO Lorenzo Simonelli said in the conference call:<\/p>\n

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We were pleased with our second quarter results and remain optimistic on the outlook for 2023. We maintained our order momentum in IET and SSPS. We also delivered strong operating results at the higher end of our guidance in both business segments, booked almost $150 million of New Energy orders and generated approximately $620 million of free cash flow.<\/p>\n<\/blockquote>\n

Note:<\/strong> I regularly cover three companies in oilfield services. After Schlumberger (SLB) and Halliburton (HAL), Baker Hughes is my third choice.<\/p>\n

2 – Stock Performance<\/h3>\n

Baker Hughes and its peers have been doing very well since the start of 2023. BKR is up 23%<\/strong> on a one-year basis, underperforming its main competitor, SLB, which is up 67% YoY.<\/p>\n

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\"Chart\"
Data by YCharts<\/figcaption><\/figure>\n<\/p>\n

Baker Hughes – The Raw Numbers – Second Quarter of 2022<\/strong> <\/h2>\n

<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n<\/colgroup>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Baker Hughes<\/strong><\/td>\n2Q22<\/strong><\/td>\n3Q22<\/strong><\/td>\n4Q22<\/strong><\/td>\n1Q23<\/strong><\/td>\n2Q23<\/strong><\/td>\n<\/tr>\n
Total Orders in $ Billion<\/td>\n5.86<\/td>\n6.06<\/td>\n8.01<\/td>\n7.63<\/td>\n7.47<\/td>\n<\/tr>\n
Total Revenues in $ Billion<\/td>\n5.05<\/td>\n5.37<\/td>\n5.91<\/td>\n5.72<\/td>\n6.32<\/td>\n<\/tr>\n
Net Income available to common shareholders in $ Million<\/td>\n-839<\/td>\n-17<\/td>\n182<\/td>\n576<\/td>\n410<\/td>\n<\/tr>\n
EBITDA $ Million<\/td>\n-321<\/td>\n463<\/td>\n664<\/td>\n1,093<\/td>\n997*<\/td>\n<\/tr>\n
EPS diluted in $\/share<\/td>\n-0.84<\/td>\n-0.02<\/td>\n0.18<\/td>\n0.57<\/td>\n0.40<\/td>\n<\/tr>\n
Operating cash flow in $ Million<\/td>\n321<\/td>\n597<\/td>\n898<\/td>\n461<\/td>\n858<\/td>\n<\/tr>\n
CapEx in $ Million<\/td>\n226<\/td>\n226<\/td>\n269<\/td>\n310<\/td>\n276<\/td>\n<\/tr>\n
Free Cash Flow in $ Million<\/td>\n95<\/td>\n371<\/td>\n629<\/td>\n151<\/td>\n582<\/td>\n<\/tr>\n
Total Cash $ Billion<\/td>\n2.93<\/td>\n2.85<\/td>\n2.49<\/td>\n2.42<\/td>\n2.81*<\/td>\n<\/tr>\n
Debt Consolidated in $ Billion<\/td>\n6.66<\/td>\n6.66<\/td>\n6.66<\/td>\n6.66<\/td>\n6.64<\/td>\n<\/tr>\n
Dividend per share in $<\/td>\n0.18<\/td>\n0.18<\/td>\n0.19<\/td>\n0.19<\/td>\n0.19<\/td>\n<\/tr>\n
Shares Outstanding (Diluted<\/strong>) in Million<\/td>\n1,001<\/td>\n1,008<\/td>\n999<\/td>\n1,018<\/td>\n1,015<\/td>\n<\/tr>\n<\/table>\n

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