Baker Hughes(US:BKR) ZACKS·2025-10-21 14:46Core Viewpoint - Baker Hughes (BKR) is expected to report its third-quarter 2025 results on October 23, with a consensus estimate of earnings per share (EPS) at 61 cents and revenues at $6.8 billion, reflecting a decline in both metrics compared to the previous year [1][2][8]. Financial Performance - In the last reported quarter, Baker Hughes achieved adjusted earnings of 63 cents per share, surpassing the Zacks Consensus Estimate of 55 cents, driven by cost improvements and operational efficiency [1]. - The Zacks Consensus Estimate for third-quarter EPS has been revised downward by 9% from the prior-year reported number [2]. - Revenue estimates indicate a 1.2% decrease from the year-ago figure, with projected revenues of $6.8 billion [2]. Market Conditions - The average spot prices for West Texas Intermediate (WTI) crude oil have decreased significantly in the third quarter of 2025 compared to the same period last year, with prices of $68.39, $64.86, and $63.96 per barrel for July, August, and September respectively, compared to $81.80, $76.68, and $70.24 per barrel in the prior year [3]. - The softer pricing environment is anticipated to negatively impact Baker Hughes' Oilfield Services and Equipment segment, with projected EBITDA from this unit expected to decline by 8.8% year over year [4]. Earnings Expectations - Current analysis suggests that Baker Hughes is unlikely to beat earnings expectations this quarter, with an Earnings ESP of -2.28% and a Zacks Rank of 3 (Hold) [5]. - The combination of a positive Earnings ESP and a higher Zacks Rank typically increases the likelihood of an earnings beat, which is not the case for Baker Hughes this time [5]. Comparative Analysis - Other companies in the sector, such as BP and ConocoPhillips, are also set to report earnings soon, with BP having an Earnings ESP of +1.21% and ConocoPhillips at +0.44%, indicating a more favorable outlook for these companies compared to Baker Hughes [6][7].