Revenues dropped by 39 percent annually and by 10 percent sequentially, to US$2.4 billion, on the back of steep decline in activities and increased pricing pressure, mostly in the Eastern Hemisphere.
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The company had laid off 2,000 employees in the first quarter and 18,000 previous year. On the other hand, activity internationally is expected to continue to decline in most countries, with a steeper decline in markets with higher lifting costs.
On a GAPP basis, the oil field service provider posted a net loss of $911 million, or $2.08 per share, compared to a net loss of $190 million posted in the second quarter of fiscal 2015.
The second quarter includes charges related to goodwill impairment, asset impairments, restructuring, and inventory, nearly entirely offset by the merger termination fee paid to the company by Halliburton.
Excluding charges related to restructuring and asset writedown, the company reported a loss of 90 cents per share, bigger than the 62 cents analysts had expected, according to Thomson Reuters I/B/E/S.
Scotia Howard Weil on Friday reiterated Baker Hughes Incorporated’s analyst rating as “Sector Outperform” with its price target of 56 highlighting a potential increase of 19.4% from Baker Hughes Incorporated’s current price of 46.9. The stock had a trading volume of 2.8 M shares. The mean price target is calculated keeping in view the consensus of 30 brokerage firms.
The High price target of the company’s Share is at $64.4 based on the calculations and analysis of 30 brokers. Year-to-Date the stock performance stands at -2.73%. Shares of Baker Hughes Incorporated (NYSE:BHI) now have an ABR of 2.00, derived from a total of 23 opinions.
The company has a 50 day moving average of 45.28 and a 200 day moving average of 44.36. The company has Relative Strength Index (RSI 14) of 53.90 along with Average True Range (ATR 14) of 1.55. The Weekly and Monthly Volatility of the stock are 3.48% and 2.91% respectively. The company’s beta value is at 1.35. As a effect of this outlook, we expect pricing to remain challenging. Its quick ratio for most recent quarter is 2.40 along with current ratio for most recent quarter of 3.60. Lastly, the company plans to optimize its capital structure by buying back shares, and repaying and refinancing its long term debt obligations, while ensuring its financial liquidity.
Baker Hughes Incorporated is engaged in the oilfield services industry.
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Return on equity (ROE) measures the rate of return on the ownership interest (shareholders’ equity) of the common stock owners.
