Baker Hughes says its revenue slid 12% in the fiscal first quarter

Baker Hughes Co. (NYSE: BKR) said on Wednesday that its adjusted profit in the fiscal first quarter was better than what analysts had anticipated. Its revenue in Q1, however, came in lower than expected.

Baker Hughes shares were reported about 2% down in premarket trading on Wednesday. The stock is now exchanging hands at £13.91 per share. In comparison, it had started the year at a higher £15.10 per share. Here’s how you can start trading on the stock market online.

Baker Hughes’ Q1 financial results versus analysts’ estimates

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Baker Hughes reported £324.70 million of net loss in the first quarter that translates to 43.82 pence per share. In the same quarter last year, its net loss stood at a massively higher £7.35 billion, or £11.25 per share due to asset impairment and restructuring costs.

Adjusted for one-time items, the oil field services company earned 8.62 pence per share in Q1 versus 7.90 pence last year. Baker Hughes generated £3.43 billion of revenue in the recent quarter that represents a 12% annualised decline.

According to FactSet, experts had forecast the company to post £3.52 billion of revenue in the first quarter. Their estimate for adjusted per-share earnings was capped at a slightly lower 7.90 pence. In the prior quarter (Q4), Baker Hughes had swung to a surprise adjusted loss.

Oilfield services and oilfield equipment, both segments, as per Baker Hughes, saw a 30% decline in revenue that fell shy of FactSet consensus. The American industrial service firm valued free cash flow at £357.75 million – an increase from £109.19 million in the comparable quarter of the previous year.

Chief Executive Lorenzo Simonelli’s comments on Wednesday

CEO Lorenzo Simonelli commented on the earnings report on Wednesday and said:

“As we look ahead to the rest of 2021, we remain cautiously optimistic that the global economy and oil demand will recover from the impact of the global pandemic. We expect spending and activity levels to gain momentum through the year as the macro environment improves, likely setting up the industry for stronger growth in 2022.”

In separate news from the United States, food service equipment maker Middleby said on Wednesday it will acquire Welbilt for £2.08 billion.

Baker Hughes performed fairly downbeat in the stock market last year with an annual decline of close to 20%. At the time of writing, the NYSE-listed firm is valued at £14.59 billion.