: Baker Hughes beats earnings expectations, is ‘constructive’ on upstream spending outlook

Shares of Baker Hughes Co. BKR slipped 0.7% in premarket trading Wednesday, to pull back from a 13-month closing high in the previous session, even after the oil services company beat second-quarter earnings expectations, with specific strength in its subsea and surface pressure systems business. And despite lower oil prices in the first half of 2023, the company said it remains “constructive” on the outlook for upstream, or extraction, spending, as market softness in North America is expected to be more than offset by strength in international and offshore markets. The company swung to net income of $410 million, or 40 cents a share, for the quarter to June 30, from a loss of $839 million, or 84 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share rose to 39 cents from 11 cents, and beat the FactSet consensus of $33 cents. Revenue grew 25.1% to $6.32 billion, above the FactSet consensus of $6.27 billion, as orders rose 27.5% to $7.47 billion. The stock has climbed 14.7% over the past three months through Tuesday, while the Energy Select Sector SPDR exchange-traded fund XLE has lost 4.8% and the S&P 500 SPX has gained 9.6%.

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