Baker Hughes to Report Q4 Earnings: What's in Store for the Stock?

Core Viewpoint - Baker Hughes Company (BKR) is expected to report its fourth-quarter 2024 results on January 30, with an estimated earnings per share (EPS) of 63 cents and revenues of $7.1 billion, reflecting a year-over-year increase of approximately 23.5% in EPS and a 3.9% improvement in revenues [1][2][3]. Financial Performance - In the last reported quarter, Baker Hughes achieved adjusted earnings of 67 cents per share, surpassing the Zacks Consensus Estimate of 60 cents, attributed to strong operational performance in its Oilfield Services & Equipment and Industrial & Energy Technology segments [1]. - The company has consistently beaten earnings estimates in the past four quarters, with an average surprise of 11.0% [2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for fourth-quarter revenues stands at$ 7.1 billion, indicating a 3.9% increase from the previous year's figure [3]. - The operating income estimate for the Oilfield Services & Equipment segment is projected at $542.8 million, up from$ 492 million reported in the same quarter last year [7]. Market Conditions - The crude price environment remained favorable for exploration and production activities, with average spot prices for West Texas Intermediate crude at $71.99 per barrel in October,$ 69.95 in November, and $70.12 in December [4]. - Increased demand for oilfield services is anticipated due to favorable commodity prices and rising activity in the offshore energy sector, particularly in Brazil and Africa [5]. Demand Drivers - Higher natural gas consumption in the U.S. during the fourth quarter, driven by increased heating needs, is expected to boost demand for Baker Hughes' services related to gas infrastructure projects [6]. Earnings Prediction - The company's Earnings ESP is +2.07%, indicating a strong likelihood of an earnings beat, supported by a Zacks Rank of 3 (Hold) [8].