Baker Hughes stock drops after adjusted profit, revenue rise but miss expectations

Shares of Baker Hughes Co. fell 2.6% in premarket trading Wednesday, after the oil services company reported first-quarter profit and revenue that missed expectations, citing a “very volatile” market environment and continued supply chain constraints. The company swung to net income of $72 million, or 8 cents a share, from a loss of $452 million, or 61 cents a share, in the year-ago period, which included restructuring and separation-related charges. Excluding nonrecurring items, adjusted earnings per share rose to 15 cents from 12 cents, but missed the FactSet consensus of 19 cents. Revenue grew 1.1% to $4.84 billion, but was below the FactSet consensus of $5.01 billion. Oilfield services revenue rose 13.1% to $2.49 billion, topping the FactSet consensus of $2.48 billion, while turbomachinery and process solutions revenue fell 9.4% to $1.35 billion to miss expectations of $1.50 billion. “The recent and unfortunate geopolitical events are exacerbating several trends, including broad-based inflation and supply pressures for key materials, commodities and labor,” said Chief Executive Lorenzo Simonelli. For 2022, Simonelli said sees a “favorable oil and gas price backdrop” but also a “dynamic operating environment.” The stock has soared 52.7% year to date through Tuesday, while the S&P 500 has lost 6.4%.

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