Benzinga -
- Baker Hughes Co (NASDAQ: BKR) reported a first-quarter FY23 revenue increase of 18% year-over-year and a 3% decline sequentially to $5.72 billion, beating the consensus of $5.51 billion.
- Orders grew by 12% Y/Y to $6.63 billion and were down 5% sequentially.
- Adjusted EPS was $0.28, beating the consensus of $0.26.
- Oilfield Services & Equipment revenue increased 19% Y/Y to $3.58 billion; operating margin expanded by 330 bps to 10.4%; and EBITDA margin was 16.2%, up 180 bps.
- Industrial & Energy Technology revenue increased 18% Y/Y to $2.14 billion; operating margin declined 200 bps to 11.3%; and EBITDA margin was 13.9%, down by 210 bps.
- The adjusted operating income was $512 (+47% Y/Y), and the margin expanded by 176 bps to 8.9%.
- Adjusted EBITDA of $782 million (+25.1% Y/Y), and the margin was 13.7%, up 75 bps.
- BKR's cash flow from operating activities for the quarter was $461 million, compared to $72 million a year ago. Free cash flow stood at $197 million.
- The company held cash and equivalents of $2.42 billion as of March 31, 2023.
- "While 2023 has already started off with some macro volatility, we remain optimistic on the outlook for energy services and Baker Hughes," stated Lorenzo Simonelli, Baker Hughes chairman and CEO.
- "We continue to believe that the current environment remains unique, with a spending cycle that is more durable and less sensitive to commodity price swings, relative to prior cycles. Another notable characteristic of this cycle is the continued shift towards the development of natural gas and LNG," added Simonelli.
- 2Q23 Outlook: BKR expects Revenue of $6.1 billion-$6.5 billion versus $5.98 billion consensus and Adj. EBITDA of $845 million-$905 million.
- FY23 Outlook: The company sees Revenue of $24 billion-$26 billion, versus $24.89 billion consensus, and Adj. EBITDA of $3.6 billion-$3.8 billion.
- Price Action: BKR shares are trading higher by 1.36% at $29.90 premarket on Wednesday.