Baker Hughes Co. (NYSE: BKR) swung to a surprise adjusted loss in the fiscal fourth quarter. The company, however, posted revenue on Thursday that topped analysts’ forecasts despite the ongoing Coronavirus pandemic that has so far infected more than 25 million people in the U.S. and caused over 416 thousand deaths.
Baker Hughes opened more than 2% down on Thursday but recovered the entire intraday loss in the next hour. The Houston-headquartered company is now exchanging hands at £16.77 per share. Learn more about how to invest in the stock market.
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In separate news from the United States, Travelers Companies Inc. said on Thursday that its profit climbed to £960 million in the fiscal fourth quarter.
Baker Hughes’ Q4 financial results versus analysts’ estimates
Baker Hughes said that its net income came in at £476.14 million in the fourth quarter that translates to 66.35 pence per share. In the same quarter last year, it had recorded a significantly lower £35 million of net income or 5.10 pence per share.
Adjusted for one-time items, however, the oilfield products and services company reported 5.10 pence of loss per share versus the year-ago figure of 19.69 pence of earnings per share. In terms of revenue, Baker Hughes noted £4.01 billion in the recent quarter that represents a 13% year over year decline.
According to FactSet, experts had forecast the company to print a lower £3.95 billion of revenue in Q4. Their estimate for adjusted per-share earnings stood at a much higher 12.40 pence. As per the company, revenue from oilfield equipment missed estimates in the fourth quarter. All other segments registered better than expected revenues in the recent quarter.
CEO Lorenzo Simonelli’s comments on Thursday
CEO Lorenzo Simonelli commented on the earnings report on Thursday and said:
“Despite an incredibly challenging year for the industry in 2020, we generated over £364.58 million in free cash flow, booked £4.67 billion in TPS orders, and executed on our substantial cost-out and restructuring program. As we look ahead of 2021, we are cautiously optimistic that the global economy and oil demand will begin to recover from the impact of the global pandemic.”
Baker Hughes performed fairly downbeat in the stock market last year with an annual decline of roughly 20%. At the time of writing, the American international industrial service company is valued at £17.28 billion.