Earnings Insight and Review - Baker Hughes

LONDON, October 27, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings review on Baker Hughes Inc. (NYSE: BHI). On October 16, 2014, the company reported its financial results for Q3 FY14 (period ended September 30, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Baker Hughes. Baker Hughes Inc. highlighted Q3 FY14 record revenue of $6.25 billion and record free cash flow of $725 million. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

During Q3 FY14, Baker Hughes Inc. reported revenue of $6,250 million compared to $5,787 million in the same period last year. The company's revenues during the reported quarter came marginally below Bloomberg analysts' forecast of $6,278 million. The company's operating income for Q3 FY14 increased to $661 million, from $576 million in the prior-year. Further, Baker Hughes Inc.'s net income broadened to $375 million, or $0.86 per diluted share in Q3 FY14, from $341 million, or $0.77 per diluted share in the same quarter last year. Analysts from Bloomberg had expected the company to report net income of $500 million, or $1.13 per diluted share in Q3 FY14. The free research on BHI can be downloaded as in PDF format at:

www.Investor-Edge.com/BHIFreeReport

The company reported a record adjusted EBITDA of $1,188 million in Q3 FY14, an increase of $170 million compared to the same quarter a year-ago. Additionally, the company's adjusted net income increased to $447 million, or $1.02 per diluted share in Q3 FY14, from $358 million, or $0.81 per diluted share in Q3 FY13.

Martin Craighead, Chairman and CEO of Baker Hughes Inc., stated that Q3 FY14 results included record revenue, record free cash flow, and more than a 10% sequential increase in adjusted earnings, all of which was achieved despite several geopolitical events in the Eastern Hemisphere and a sharp reduction of activity in the Gulf of Mexico which caused margins to fall short of the company's expectations. He further asserted that the company's outlook for the near term remains positive based on increasingly favorable market conditions in its North American business and recent actions to increase profitability internationally. Sign up and read the free analyst's notes on BHI at:

www.Investor-Edge.com/BHI-27102014

With the repurchase of 2.9 million shares of its stock in the open market during Q3 FY14 for a total value of $200 million, Baker Hughes Inc. still has $1.05 billion left under its authorized share repurchase program. Moreover, in Q3 FY14, the company made a total of $74 million dividend payments, which is in line with the 13% increase in the quarterly cash dividend announced in May 2014.

Stock Performance 

On the day of the earnings release, October 16, 2014, Baker Hughes Inc.'s stock ended the session at $52.01, down 3.02%, and has witnessed a mixed momentum since then. On the last close, Friday, October 24, 2014, the stock finished at $53.49, 1.16% below its previous day's closing price, after vacillating between $52.66 and $54.07. A total of 4.07 million shares were traded, which was below its three months average volume of 4.26 million shares. Over the previous three trading sessions and last one month, the company's shares have fallen by 1.36% and 18.32%, respectively. Also, the stock has declined 3.20% from the beginning of 2014. Shares in Baker Hughes Inc. are trading below their 50-day and 200-day moving averages of $63.69 and $65.79, respectively. Furthermore, the stock traded at a PE ratio of 15.76 and has a Relative Strength Index (RSI) of 33.35. Visit Investor-Edge and access the latest research on BHI at:

www.Investor-Edge.com/BHIEarningsCoverage

Sneak Peek to Corporate Insider Trading 

In the last one month, there were two insider transactions made by Belgacem Chariag, President, Global Products and Services at Baker Hughes Inc. On October 23, 2014, Mr. Chariag purchased 3,333 shares of the company at a price of $52.34 per share and sold 912 shares of the company at the same price and on the same date. Complimentary in-depth research on BHI is available at:

www.Investor-Edge.com/BHIInsiderTrading

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