Baker Hughes Inc. (NYSE:BHI) reported second-quarter 2016 adjusted loss from continuing operations of 90 cents a share, substantially wider than the Zacks Consensus Estimate of a loss of 60 cents per share. The quarterly figure was also significantly wider than the year-ago adjusted loss of 14 cents a share.
This was mainly due to job cuts,impairment and restructuring charges related to writedown of assets and contract terminations.
Revenues of $2,408 million came in above the Zacks Consensus Estimate of $2,330 million. Of Baker Hughes' total quarterly revenue, North America, Europe/Africa/Russia/Caspian, Middle East/Asia-Pacific and Latin America accounted for 27.7%, 24.1%, 27% and 9.8%, respectively. The remainder was generated by the Industrial Services segment.
Liquidity
At the end of the second quarter, Baker Hughes had $3,910 million in cash and cash equivalents, while long-term debt was $2,887 million. In the reported quarter, capital expenditures totaled $70 million, which reflects a decrease of $16 million or 19% sequentially, and $188 million or 73% from the second quarter of 2015. The reduction in capital expenditure is attributable to lower activity levels and focus on capital discipline.
Depreciation and amortization expenses were $305 million, down 14% sequentially and 30% year over year. The decline in expenses is primarily attributable to the prior-year impairment and restructuring actions.
Zacks Rank & Stocks to Consider
Currently, Baker Hughes carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are GeoPark Limited (NYSE:GPRK) , Northern Oil and Gas, Inc. (NYSE:NOG) and Rex Energy Corporation (NASDAQ:REXX) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
BAKER-HUGHES (BHI): Free Stock Analysis Report
REX ENERGY CORP (REXX): Free Stock Analysis Report
GEOPARK LTD (GPRK): Free Stock Analysis Report
NORTHRN OIL&GAS (NOG): Free Stock Analysis Report
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