Valued at a market cap of $38 billion, Baker Hughes Company (BKR) is a global energy technology leader that provides a portfolio of technologies and services to the energy and industrial value chain. The Houston, Texas-based company offers drilling equipment, subsea systems, and well construction products and services. It also provides industrial solutions such as gas turbines, compressors, condition monitoring, and technologies for carbon capture, hydrogen, and emissions management. It is expected to announce its fiscal Q2 earnings for 2025 after the market closes on Tuesday, Jul. 22.
Ahead of this event, analysts expect this energy technology company to report a profit of $0.55 per share, down 3.5% from $0.57 per share in the year-ago quarter. The company has a solid trajectory of consistently beating Wall Street’s earnings estimates in each of the last four quarters. In Q1, BKR’s EPS of $0.51 outpaced the forecasted figure by 8.5%.
For fiscal 2025, analysts expect BKR to report a profit of $2.38 per share, up 1.3% from $2.35 per share in fiscal 2024. Its EPS is expected to further grow 14.7% year-over-year to $2.73 in fiscal 2026.
BKR has lagged behind the S&P 500 Index's ($SPX) 13.2% rise over the past 52 weeks, with its shares up 10.7%. However, it has outperformed the Energy Select Sector SPDR Fund’s (XLE) 6.3% loss over the same time frame.
BKR released its Q1 results on Apr. 22, and its shares plunged 6.4% in the following trading session. The company’s adjusted EPS of $0.51 improved 18.6% from the year-ago quarter and outpaced the consensus estimates by 8.5%. Moreover, its adjusted EBITDA came in at $1 billion, representing a 10% increase from the same period last year. However, its top line performance was disappointing. Orders fell 1.3% year-over-year, resulting in only a slight increase in revenue to $6.4 billion, which missed the analyst estimates by 1.2%. A 7.5% drop in revenue from its oilfield services & equipment segment offset gains in its industrial & energy technology segment and impacted its overall top line performance.
Wall Street analysts are highly optimistic about BKR’s stock, with a "Strong Buy" rating overall. Among 22 analysts covering the stock, 17 recommend "Strong Buy," two suggest “Moderate Buy,” and three indicate “Hold.” The mean price target for BKR is $47.35, which indicates a 22.4% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
