Shares of oilfield services major Baker Hughes (BKR) slumped on Thursday after the company reported adjusted fourth-quarter earnings that missed analysts’ forecasts as it continued to recover from a slump in oil and gas prices due to the Covid-19 pandemic.
Houston-based Baker Hughes posted net income of $653 million, or 91 cents a share, in the fourth quarter, vs. $48 million, or 7 cents a share, in the comparable year-earlier period.
On an adjusted basis, the company posted a loss of $50 million, which translated into a per-share loss of 7 cents. Analysts polled by FactSet had been expecting earnings of 17 cents a share.
Revenue came in at $5.5 billion for the quarter, down 13% year over year, the company said , though slightly ahead of the $5.4 billion analysts polled by FactSet had been expecting. Orders totaled $5.2 billion, down 25% year over year.
Cash flows generated from operating activities were $378 million for the quarter. Free cash flow (a non-GAAP measure) for the quarter was $250 million.
In a statement, CEO Lorenzo Simonelli noted that the company generated more than $500 million in free cash flow, booked $6.4 billion in TPS orders, and executed on a “substantial” cost-out and restructuring program – efforts that will help Baker Hughes’s bottom line in 2021.
“We also took several important steps to accelerate our strategy and invest in energy transition technologies, helping to position the company for the future,” Simonelli said. “As we look ahead to 2021, we are cautiously optimistic that the global economy and oil demand will begin to recover from the impact of the global pandemic.”
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