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Baker Hughes: 4th-Worst-Performing Energy Stock of XLE in 2017

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Baker Hughes fell nearly 30%

Baker Hughes, a GE company (BHGE), the fourth-worst-performing energy stock of the Energy Select Sector SPDR ETF (XLE), is from the oilfield services industry. In 2017, it fell ~30% to $31.64 from its 2016 close of $45.26. It significantly underperformed the Energy Select Sector SPDR ETF (XLE) in 2017. XLE fell ~3% in 2017. BHGE also underperformed crude oil (USO) and natural gas (UNG). In 2017 crude oil rose ~12%, and natural gas fell ~21%.

Baker Hughes also underperformed the VanEck Vectors Oil Services ETF (OIH), which represents an index of stocks from the oilfield services industry. OIH fell ~22% in 2017. In comparison, the SPDR S&P 500 ETF (SPY) rose ~19%, and the SPDR Dow Jones Industrial Average ETF (DIA) rose ~25% in 2017.

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Baker Hughes’s revenues and earnings

In the first nine months of 2017, Baker Hughes reported revenues of ~$11.5 billion. That’s ~17% higher than ~$9.8 billion in the same period of 2016. In the first nine months of 2017, it reported a net loss of ~$104 million, which is lower than its almost flat net income of ~$0 million in the first nine months of 2016. The steep rise of ~24% in operating expenses caused BHGE’s net income to fall in the first nine months of 2017. Its operating expenses were ~$11.5 billion in the first nine months of 2017 compared to ~$9.3 billion in the same period in 2016.

Next, let’s take a look at the 2017 returns of Hess Corporation (HES) compared to the broader market and energy commodities. We’ll also analyze its fundamental metrics.

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