Baker Hughes Reports Slight Q4 Miss But Outlook is Strong

Baker Hughes Company (NASDAQ:BKR) reported its Q4 results, with EPS of $0.38 missing the Street estimate of $0.40. Revenue came in at $5.9 billion, worse than the Street estimate of $6.06 billion.

The slight miss was compensated by a bullish outlook, with the company expecting fiscal 2023 revenue to be in the range of $14.5-15.5 billion. EBITDA is expected in the range of $2.4-2.8 billion (16.6-18.1% margin).

Analysts at RBC Capital think the company’s 2023 guidance appears achievable in light of strong orders, increasing global drilling and completion spending, and continued self-help margin initiatives that should bear fruit heading through 2024. The analysts raised their price target to $35 from $33 while maintaining their Outperform rating.