Baker Hughes to Sell Waygate Technologies for $1.45 Billion
Written by Emily J. Thompson, Senior Investment Analyst
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Should l Buy BKR?
Source: Newsfilter
Baker Hughes Co (BKR) has seen its stock rise by 3.82% as it reaches a 20-day high, despite the broader market decline with the Nasdaq-100 down 0.24% and the S&P 500 down 0.16%.
The company is set to announce its Q1 2023 earnings on April 23, with an expected EPS of $0.49, reflecting a decline from the previous year. Additionally, Baker Hughes plans to sell Waygate Technologies to Hexagon for $1.45 billion, which may significantly impact its asset structure and future financial performance. This strategic move indicates the company's ongoing transformation and adaptation to market conditions.
The upcoming earnings report and the sale of Waygate Technologies highlight Baker Hughes' efforts to navigate market pressures while maintaining a focus on growth and stability. Investors will be closely watching these developments as they could influence the company's future trajectory.
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Analyst Views on BKR
Wall Street analysts forecast BKR stock price to fall
13 Analyst Rating
12 Buy
1 Hold
0 Sell
Strong Buy
Current: 69.670
Low
52.00
Averages
61.54
High
67.00
Current: 69.670
Low
52.00
Averages
61.54
High
67.00
About BKR
Baker Hughes Company is an energy technology company that provides solutions to energy and industrial customers worldwide. The Company's segments include Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET). OFSE segment provides products and services for onshore and offshore oilfield operations across the lifecycle of a well, ranging from exploration, appraisal, and development, to production, rejuvenation, and decommissioning. OFSE segment is organized into four product lines: Well Construction; Completions, Intervention, and Measurements; Production Solutions, and Subsea. IET segment provides technology solutions and services for mechanical-drive, compression and power-generation applications across the energy industry including oil and gas, liquefied natural gas operations, downstream refining, and petrochemical markets, as well as lower carbon solutions to broader energy and industrial sectors. IET segment also provides equipment, software, and services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Capex Plans: Despite a roughly 50% increase in oil prices since the war began, analysts do not expect significant swings in capex forecasts, with average estimates for Alphabet, Amazon, and Meta remaining within the guidance provided in January.
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- Earnings Beat: Baker Hughes exceeded Q1 earnings and revenue estimates despite disruptions in the Middle East, indicating the company's strong financial performance even in challenging conditions, which boosts investor confidence.
- Analyst Upgrades: Following the earnings report, several analysts raised their price targets for Baker Hughes, reflecting a positive outlook on the company's future growth potential, which could further drive stock price increases.
- Stock Price Increase: Baker Hughes' stock rose 0.7% in pre-market trading after the earnings announcement, demonstrating a positive investor reaction to the company's performance, potentially attracting more investor interest.
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- Amphenol's Strong Performance: Amphenol (APH), valued at $184.6 billion, achieved a remarkable 35.6% revenue growth over the last two years, with earnings per share increasing by 49%, indicating significant market share gains, and a robust free cash flow margin of 15.7% provides various options for capital deployment.
- Raymond James' Steady Growth: Raymond James (RJF), with a market cap of $30.24 billion, has surpassed the sector average with an 11.6% annual revenue growth over the last five years, while share buybacks have propelled its earnings per share growth to 16.2%, showcasing management's ability to generate profitable ventures.
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See More
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- Record Orders: The company achieved total orders of $8.2 billion in Q1, with IET orders reaching $4.9 billion, marking a record high, indicating robust market demand, and the IET order target is expected to exceed $40 billion by 2028, reflecting confidence in future growth.
- Cautious Outlook: Management guided for Q2 revenue of $6.5 billion and adjusted EBITDA of $1.13 billion based on assumptions regarding the Middle East situation, while warning of potential inflationary pressures and supply chain disruptions, highlighting uncertainty ahead.
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See More
