Baker Hughes Inc. (NYSE: BHI) reported third-quarter results before markets opened Thursday. The oil field services firm reported adjusted diluted earnings per share (EPS) of $1.02 on revenues of $6.25 billion. In the same period a year ago, Baker Hughes reported EPS of $0.81 on revenues of $5.79 billion. Third-quarter results also compare to the consensus estimates for EPS of $1.13 on revenues of $6.29 billion.

Baker Hughes did not offer any guidance other than the CEO’s comment, “Our outlook for the near term remains positive based on increasingly favorable market conditions in our North American business and recent actions to increase profitability internationally.” The consensus estimates for the fourth quarter call for EPS of $1.27 on revenues of $6.52 billion. For the full fiscal year, EPS are estimated at $4.15 on revenues of $24.45 billion.

The company’s CEO also said:

For the fourth quarter, our North American segment is expected to deliver increased revenue and margins as activity levels return to normal in the Gulf of Mexico and profitability continues to improve in our pressure pumping business. Internationally, we project increased revenue and margins due to the seasonal uplift in year-end product sales along with recent contract wins in Latin America, and actions taken to improve efficiencies in the Eastern Hemisphere.

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At the end of the second quarter, Baker Hughes said it expected higher international rig counts and increased North American well counts would lead to “strong earnings growth.” International rig counts are down by 21 since the end of the second quarter, although the North American well count is up by more than 100. The drop in international rigs was unforeseen and is likely the cause for the shortfall in revenues and earnings Baker Hughes reported Thursday morning.

The CEO also noted a “sharp reduction of activity in the Gulf of Mexico” that combined with political problems in the Eastern Hemisphere “caused margins to fall short of our expectations.”

Earnings growth did improve, but not as much as analysts expected. Worse, given the almost unstoppable decline in oil prices, services companies like Baker Hughes are going to get squeezed on prices and will be forced to cut costs to maintain profitability. The company will talk about its outlook in its conference call later in the morning.

Shares of Baker Hughes closed up about 2.2% at $56.63 on Wednesday and were trading down 8.5% in the premarket Thursday morning at $49.05, which would be a new 52-week low if it holds. The stock’s current 52-week range is $50.77 to $75.64. Thomson Reuters had a consensus analyst price target of around $81.40 before the results were announced.

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