Baker Hughes Incorporated said in a press release Friday morning it expects EPS of just $1.07-$1.09, sending its shares lower by 4% in pe-market trading (as of 8:10 a.m. EST). During the first quarter, Baker Hughes reported EPS of $1.17; consensus estimates forecast EPS of $1.18 in Q2. The company is due to report full Q2 results on July 27. Among the causes of expected soft earnings in Q2, Baker Hughes cited "significant deterioration of activity and profitability in Canada -- particularly in the Drilling and Evaluation segment," as well as "an increase in the effective tax rate for the company" and higher "repair and maintenance cost at INTEQ." As of yesterday's close, Baker's shares have risen 13% over the last year.
Sources: Press Release, Reuters, MarketWatch, RTT News
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Stocks/ETFs to watch: Baker Hughes Incorporated (BHI). Competitors: Schlumberger Limited (SLB), Halliburton Company (HAL), Smith International (SII)
ETFs: Oil Service HOLDRs (OIH), iShares Dow Jones US Oil Equipment (IEZ), SPDR S&P Oil & Gas Equipt & Servs. (XES)
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