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Is a Beat in Store for Baker Hughes (BHGE) in Q3 Earnings?

Baker Hughes, a GE company BHGE is scheduled to report third-quarter 2018 results on Oct 30, before the opening bell.

The oilfield services player beat the Zacks Consensus Estimate in two of the last four quarters. For the third quarter of 2018, the Zacks Consensus Estimate for earnings per share is pegged at 21 cents, up more than 300% from the year-ago quarter.

Baker Hughes, a GE company Price and EPS Surprise

Baker Hughes, a GE company Price and EPS Surprise | Baker Hughes, a GE company Quote

Let's see how things are shaping up for the upcoming quarterly release.

Why a Likely Positive Surprise?

Our proven model shows that Baker Hughes is likely to beat earnings estimates because it has the right combination of two key ingredients.

Earnings ESP: Earnings ESP , which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +2.17%. This is a very meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Zacks Rank: Currently, Baker Hughes carries a Zacks Rank #3 (Hold), which when combined with +2.17% ESP, makes us confident about an earnings beat.

Please note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates. The Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.

What's Driving the Better-Than-Expected Performance?

The Zacks Consensus Estimate for operating income from the Digital Solutions unit is pegged at $98 million for the third quarter, higher than the last reported quarter's $96 million and the year-ago quarter's $87 million.

The Oilfield Equipment segment is expected to come up with narrower-than-expected loss of around $4 million compared with the year-ago period's $43 million and second-quarter 2018's figure of $12 million.

The Zacks Consensus Estimate for operating income from the Oilfield Services segment is pegged at $229 million for the third quarter, higher than the last reported quarter's $189 million and the year-ago quarter's $75 million.

The Zacks Consensus Estimate for operating income from the Turbomachinery & Process Solutions is pegged at $147 million, up from $113 million in the second quarter of 2018.

Total orders from all its segments for the third quarter is expected at $5.9 billion, higher than the year-ago figure of $5.7 billion.

Other Stocks to Consider

Here are some other companies from the energy sector, which, according to our model, also have the right combination of elements to post an earnings beat in the to-be-reported quarter:

Houston, TX-based Penn Virginia Corporation PVAC has a Zacks Rank #2 and an Earnings ESP of +6.38%. The company will report third-quarter earnings on Nov 14. You can see the complete list of today's Zacks #1 Rank stocks here .

Woodlands, TX-based Anadarko Petroleum Corporation APC holds a Zacks Rank #2 and has an Earnings ESP of +2.39%. The company is scheduled to report third-quarter earnings on Oct 30.

Calgary, Canada-based Enbridge Inc. ENB carries a Zacks Rank #2 and has an Earnings ESP of +5.67%. The company is anticipated to report quarterly results on Nov 2.

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Baker Hughes, a GE company (BHGE): Free Stock Analysis Report

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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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