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Baker Hughes Reports Loss in Q1, Lags Revenues: Down Y/Y - Analyst Blog

Baker Hughes Inc.BHI , one of the largest oilfield service companies in the world, reported first-quarter 2015 adjusted loss from continuing operations of 7 cents a share, which compared unfavorably with the Zacks Consensus Estimate of earnings of 47 cents. The bottom line also decreased from the year-ago adjusted profit level of 84 cents a share.

The total revenue of $4,594 million in the quarter declined over 19% from the year-ago level of $5,731 million. The top line also missed the Zacks Consensus Estimate of $5,312 million.

First-Quarter Segmental Highlights

Of Baker Hughes' total quarterly revenue, North America, Europe/Africa/Russia/Caspian, Middle East/Asia-Pacific and Latin America accounted for 44%, 19%, 20% and 11%, respectively. The remainder was generated by the Industrial Services segment.

Europe/Africa/Russia/Caspian, recorded a pre-tax loss margin of 2% as against a profit before-tax margin of 14% in the year-ago quarter. North America reported a pre-tax loss margin of 10% compared with a profit before-tax margin of 9% reported in the year-earlier quarter.

Pre-tax margins at the Middle East/Asia-Pacific segment also came in at 7% as against 12% in the prior-year quarter. Latin America decreased to 7% from 10% in the year-ago period. Industrial Services segment registered lower pre-tax margins at 4% as against 8% in the comparable quarter last year.

Liquidity

At the end of the first quarter, Baker Hughes had $1,606.0 million in cash and cash equivalents, while long-term debt was $3,906.0 million, representing a debt-to-capitalization ratio of 17.9%. Capital expenditures were $315 million and depreciation and amortization expenses were $460 million in the first quarter.

Rank

Baker Hughes carries a Zacks Rank #3 (Hold). Better-ranked stocks from the same space include Valero Energy Partners L.P. VLP , CNOOC Ltd CEO and Hallador Energy Company HNRG . All these stocks sport a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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