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Baker Hughes’ Share Price and Returns after Fiscal 4Q15 Earnings

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Baker Hughes’ share price reaction

Baker Hughes released its financial information for fiscal 4Q15 on January 28, 2016. Its stock reacted positively immediately following the earnings release. On that day, it increased 4.6% to $43.12 from the previous day’s close. Since the beginning of this year, its share price has gone down 8.7%.

Cameron International (CAM), BHI’s peer in the oilfield equipment and services (or OFS) industry, also released its financial information for fiscal 4Q15 on January 28. CAM’s share price increased by 4.8% on the day of its latest earnings. Together, BHI and CAM make up 13.7% of the VanEck Vectors Oil Services ETF (OIH).

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BHI’s share price returns compared with industry

In the past year, Baker Hughes’ stock has returned -23% (net of dividends) until January 28. In the past year, BHI has outperformed the VanEck Vectors Oil Services ETF (OIH), which has returned -26.7%. The Energy Select Sector SPDR ETF (XLE), the broader energy industry ETF, has performed on par with BHI, producing a -22% return. BHI has also hugely outperformed the US rig count, which returned -61% in the past year.

However, BHI has underperformed the SPDR S&P 500 ETF (SPY), which has returned -4.4% during the same period. BHI comprises 0.11% of SPY. BHI’s peer RPC, Inc. (RES) has also underperformed BHI, producing a return of about -7% since January 28, 2015. Read Market Realist’s article on Baker Hughes: An In-Depth Overview of the Oilfield Industry Giant to learn about Baker Hughes in depth.

In the final article in this series, we will discuss Wall Street analysts’ targets for Baker Hughes.

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