by Christopher Freeburn | October 19, 2012 12:16 pm
Shares of Baker Hughes (NYSE:BHI) dropped more than 5% in midday trading on Friday after it announced quarterly results that fell short of expectations.
Baker Hughes said it earned $279 million during the third quarter, down 60% from $706 million in the same period last year. Adjusted EPS was 73 cents, down from $1.18 in 2011, and missing the 84 cents Wall Street anticipated, Dow Jones noted.
The oilfield services company said quarterly revenue rose to $5.23 billion, up 3.2% over last year. But that also missed analysts’ predictions for revenue of $5.44 billion.
Company officials noted that drilling in Canada had dropped 30% compared to 2011, while rig counts in Norway, Columbia and Brazil were down 17% from the last quarter, though international drilling was forecast to improve by year-end.
Baker Hughes said its operating margin tumbled from 15.9% last year to 8.8% on expenses that jumped 12% to $4.77 billion. An imbalance at its pressure pumping operations in North America, as well as reduced activity in other regions, was blamed for the rise in expenses.
On Tuesday, oilfield rival Halliburton (NYSE:HAL) reported lower third-quarter earnings that matched analysts’ forecasts on revenue that rose 9% over last year.
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