Oil Services Earnings Dominated by American Activity
Baker Hughes Inc. (NYSE: BHI) also reported first-quarter earnings Thursday morning. The company posted adjusted EPS of $0.84 on revenues of $5.73 billion, compared with EPS of $0.65 on revenues of $5.23 billion in the same period a year ago. The consensus estimates called for EPS of $0.78 on revenues of $5.71 billion.
The big difference between the two companies — and their quarterly results — is exposure to North America. Baker Hughes gets 48% of its revenues from North American operations, while Schlumberger gets a third of its revenues from the United States and Canada. And because that is where the land-based drilling action was during the quarter, that is where the revenues and profits are.
Neither company provided guidance in its press release. The consensus estimate for Schlumberger calls for second-quarter EPS of $1.36 on revenues of $12.11 billion. For the full year, EPS is pegged at $5.67 on revenues of $49.31 billion.
At Baker Hughes, the consensus second-quarter estimates call for EPS of $0.89 on revenues of $5.9 billion. For the full year, the consensus EPS estimate is $4.03 on revenues of $24.23 billion.
Schlumberger shares were up about 0.8% in premarket trading Thursday, at $100.94 in a 52-week range of $69.08 to $101.06. The high was posted Wednesday. Thomson Reuters had a consensus analyst price target of around $111.70 before the results were announced.
Shares of Baker Hughes were up about 5.6% at $68.97, above the top of the stock’s 52-week range of $42.60 to $66.56. That high was set Wednesday as well. The price target on the stock from Thomson Reuters is around $69.20.