Baker Hughes Inc. (NYSE: BHI) reported third-quarter results before markets opened Friday morning. The oil field services firm posted adjusted diluted quarterly earnings per share (EPS) of $0.81 on revenues of $5.79 billion. In the same period a year ago, Baker Hughes reported EPS of $0.73 and revenues of $5.36 billion. Third-quarter results also compare to the consensus estimates for EPS of $0.78 on revenues of $5.77 billion.
On a GAAP basis, Baker Hughes posted $0.77 EPS, which includes $0.04 per share for after-tax severance charges. Adjusted EPS includes a $0.09 per share provision for bad debts in Latin America.
Baker Hughes did not offer any guidance. The consensus estimates for the fourth quarter call for EPS of $0.94 on revenues of $6.02 billion. For the full year, EPS is estimated at $2.96 and revenues at $22.41 billion.
The company’s CEO said:
[I]n our Eastern Hemisphere operations, we increased revenue 20% compared to the same quarter last year at higher margins as a result of increased activity and improved mix. This growth was led by strong performance in the Middle East, Asia Pacific, Africa, and Russia Caspian. North America also delivered higher margins with the seasonal recovery in Canada and improved performance in all of our product lines. Across the region, growth was led by our Drilling Services, Completions Systems, Artificial Lift, and Upstream Chemicals businesses.
The operating margin for the quarter rose to 11% from 10% in 2012. The only regional decline came from the company’s Latin American group, which saw margins slip from up 8% to a negative 4%.
Shares were up 5.7% in premarket trading Friday morning to $54.72, well above the current 52-week range of $39.44 to $51.96. Thomson Reuters had a consensus analyst price target of around $53.10 before these results were announced.