Baker Hughes Reports In-line; Strong International Outlook

| About: Baker Hughes, (BHGE)
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Oil services company Baker Hughes reported in-line Q3 earnings, "driven by strong international activity" and "a seasonal recovery in Canadian drilling," (full transcript later ). Net income rose 9% to $389.1 million, good for EPS of $1.22, versus EPS of $1.09 in the year-earlier period. Revenue climbed 16% y/y to $2.68 billion; the company's earnings were in-line with consensus analyst estimates, while revenue slightly topped expectations of $2.64 billion. While the outlook for North American activity, particularly in Western Canada and the Gulf of Mexico "remains uncertain," CEO Chad C. Deaton was encouraged that, "The outlook for our international business remains strong as our customers continue to be challenged in their efforts to increase reserves and production volumes for oil and natural gas. Today's high oil price is a clear signal that the industry must increase its activity in order to satisfy growth expectations for worldwide demand," he said. Baker Hughes competitor, Schlumberger Ltd., also recently reported uncertainty in the North American market was being more than offset by strength in its international operations (full story). BHI is up 25% YTD.

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