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Why Baker Hughes’s Q2 2018 Earnings Rose

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Baker Hughes’s Q2 2018 earnings estimates

For Q2 2018, analysts expect Baker Hughes (BHGE) to post adjusted earnings per share (or EPS) of $0.14, which would be a sharp increase of 58% from the first quarter’s adjusted earnings of $0.09 per share. BHGE will hold its Q2 2018 earnings conference call on July 20.

Volume improvement in the Oilfield Services segment, margin improvement through higher-margin backlog, revenue and margin improvements in the Digital Solutions segment, and synergies from the merger with GE’s oil and gas business are expected to result in the Q2 2018 earnings improvement. However, challenges in the Oilfield Equipment segment could partially offset the rise.

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What happened in the first quarter?

In the first quarter, Baker Hughes recorded an adjusted profit compared to a $0.24 adjusted loss in Q1 2017. Strong operating profit growth in the oilfield services and digital solutions segments in the first quarter primarily led to the improved earnings.

Analysts’ estimates for BHGE’s peers

In comparison, Wall Street analysts expect Nabors Industries (NBR) to cut the Q2 2018 adjusted loss to $0.24 per share compared to its adjusted loss of $0.29 per share in the first quarter. Analysts expect Core Laboratories’ (CLB) Q2 2018 adjusted earnings to increase 21% compared to Q1 2018. Sell-side analysts expect TechnipFMC’s (FTI) Q2 2018 adjusted earnings to improve 35% compared to Q1 2018.

Next, we’ll discuss Baker Hughes’s revenue and earnings in Q1 2018.

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