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Mar 31, 2020
Baker Hughes Q1 2020 Earnings Report
Announced results for the first quarter of 2020.
Key Takeaways
Baker Hughes reported a revenue of $5.4 billion for the quarter, a decrease of 3% year-over-year. The GAAP operating loss was $16,059 million, while the adjusted operating income was $240 million. The company generated $152 million in free cash flow. The GAAP diluted loss per share was $(15.64), and the adjusted diluted earnings per share were $0.11.
Orders of $5.5 billion, down 20% sequentially and down 3% year-over-year.
Revenue of $5.4 billion, down 15% sequentially and down 3% year-over-year.
GAAP operating loss of $16,059 million, down sequentially and year-over-year.
Adjusted operating income (non-GAAP) of $240 million, down 56% sequentially and down 12% year-over-year.
Revenue by Segment
Forward Guidance
The outlook for oil and gas demand and supply appears equally uncertain, and it will largely be driven by the pace of economic recovery from the COVID-19 pandemic and the supply response that ultimately materializes. Baker Hughes has taken decisive actions in an effort to cut costs, accelerate structural changes, and deploy technology and optimize processes that can lower costs for customers.
Positive Outlook
- Strong backlog of longer-cycle projects and aftermarket services provides greater stability.
- Committed to delivering critical technology that helps customers operate more efficiently.
- Reducing capital expenditures by more than 20% versus 2019.
- Executing a restructuring plan to right size operations.
- Continuing to deliver on portfolio evolution strategy.
Challenges Ahead
- Volatile macro environment driven by a significant decline in oil prices.
- Sudden demand shock from COVID-19.
- Rising global oil supply.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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