Analysts Estimate Baker Hughes (BKR) to Report a Decline in Earnings: What to Look Out for

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Baker Hughes due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Baker Hughes is expected to report quarterly earnings of $0.55 per share, reflecting a -3.5% change year-over-year, with revenues projected at $6.63 billion, down 7.1% from the previous year [3]. - The consensus EPS estimate has been revised 0.41% lower in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Baker Hughes is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +3.03% [12]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [10]. Historical Performance - In the last reported quarter, Baker Hughes exceeded the expected earnings of $0.47 per share, achieving $0.51, which was a surprise of +8.51% [13]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [14]. Investment Considerations - Despite a positive Earnings ESP, Baker Hughes currently holds a Zacks Rank of 4, complicating predictions of an earnings beat [12]. - The potential for stock movement is influenced by various factors beyond earnings results, including market conditions and investor sentiment [15].