This article was originally published by GuruFocus
By Sarfaraz A. Khan, Research Assistant: Gohar Yousuf
March 1, 2013
March 1, 2013
The shares of the third largest oilfield services firm Baker Hughes (BHI) surged yesterday after analysts at Raymond James upgraded the stock tostrong buy. The company is set to benefit from the increasing prices of pressure pumping due to a rise in demand of fracking services caused by an increase in the natural gas prices. This positive commentary comes just weeks after the company released its quarterly results in which it managed to beat both top and bottom line estimates.
In its results for the final quarter, Baker Hughes delivered an impressive performance, driven by strong growth in international markets, particularly in the Middle East, Africa and Asia Pacific regions. This comes despite the temporary shutdown in Iraq, which had an adverse impact on the bottom line.
In the fourth quarter of 2013, Baker Hughes reported a 10% year-over-year increase in revenues to $5.86 billion while net income increased by 16% to $248 million, or $0.56 per share. This translated into adjusted earnings of $0.62 per share. The company has surpassed Wall Street’sestimates of earnings of $0.61 per share from $5.68 billion in revenues. Analysts’ estimates typically exclude the one-off items and therefore, they correspond with the adjusted, or non-GAAP, earnings.
In the meantime, the suspension of operations in Iraq dragged .... read full article at GuruFocus
