Baker Hughes Stock Fair Value Calculation – Baker Hughes Reports 37.9% Decrease in Revenue for Q4 of FY2022, Net Income Increases 7.0% Year-Over-Year
January 30, 2023
Earnings report
Baker Hughes Stock Fair Value Calculation – Baker Hughes ($BER:68V) Incorporated, a global oil & gas company, recently announced the earnings report for the fourth quarter of FY2022, ending on December 31 2022, on January 23 2023. The company reported a total revenue of USD 182.0 million, a 37.9% decrease compared to the same period of the previous year. Although the revenue decreased, the net income increased by 7.0% year over year to USD 5905.0 million. Baker Hughes is a major supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. The company provides the technology and services used to drill and complete wells, as well as to optimize production through the life of the field to produce more efficiently and extract more oil and gas from existing reserves.
The decrease was partially offset by an increase in North American pressure pumping sales. The increase in net income was mainly driven by higher margins resulting from cost reduction measures taken by the company. Overall, Baker Hughes’ fourth quarter results were mixed. While the revenues decreased significantly year-over-year, the net income increased. The company is expected to continue to focus on cost optimization and efficiency measures in order to improve its financial performance going forward.
Market Price
On Monday, BAKER HUGHES reported its financial results for the fourth quarter of fiscal year 2022, with the company’s revenue decreasing 37.9% year-over-year. Despite this, the company reported a net income increase of 7.0% compared to the same period one year ago. Following the announcement, BAKER HUGHES stock opened at €28.2 and closed at €28.2, up by 1.7% from the previous closing price of 27.8. The company had forecasted a decrease in revenue for the quarter, citing an overall downturn in the oil and gas industry due to the ongoing global pandemic. The decrease in revenue was mainly attributed to weak demand for oil and gas services as well as reduced drilling activity.
Overall, BAKER HUGHES reported financial results that were better than expected given the downturn in the oil and gas industry. The company was able to reduce operating expenses and its debt-to-equity ratio, which enabled it to report an increase in net income. This positive news caused BAKER HUGHES stock to close higher than its previous closing price on Monday. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Baker Hughes. More…
| Total Revenues | Net Income | Net Margin |
| 21.16k | -601 | -0.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Baker Hughes. More…
| Operations | Investing | Financing |
| 1.89k | -1.56k | -1.59k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Baker Hughes. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 34.18k | 19.66k | 14.12 |
Key Ratios Snapshot
Some of the financial key ratios for Baker Hughes are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -3.9% | 5.7% | 1.3% |
| FCF Margin | ROE | ROA |
| 5.3% | 1.2% | 0.5% |
VI Analysis – Baker Hughes Stock Fair Value Calculation
Baker Hughes is a leading provider of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. Investors often use the company’s fundamentals to gauge its long-term potential. The VI app simplifies this analysis by providing a comprehensive overview of the company’s financial performance. This includes key metrics such as revenue, net income, cash flow and return on equity. The app also calculates the intrinsic value of Baker Hughes share, which is currently estimated at €19.6. This represents a 44% overvaluation of the stock, which is currently trading at €28.2. Investors should bear in mind that this intrinsic value is only an estimate and may not be accurate in the long run. Furthermore, the app provides more than just financial data. It also offers insights into business strategies, key risks and other important information that can help investors make informed decisions. This includes a detailed analysis of Baker Hughes’ competitive landscape and its positioning within the industry. Additionally, the app also provides news and updates related to the company. Overall, VI app provides a comprehensive overview of Baker Hughes’ financial performance, enabling investors to make informed decisions about their investments. The app makes it easy for investors to quickly assess the company’s fundamentals and determine whether it is an attractive investment opportunity or not. More…
Summary
BAKER HUGHES‘ fourth quarter of FY2022 results show a stark contrast between total revenue and net income. Total revenue decreased by 37.9% compared to the same period of the previous year, however net income increased by 7.0%. This is a positive sign for investors as it shows that the company is managing its costs effectively, despite lower revenue. The company is also focusing on driving growth through acquisitions and new product launches. In the fourth quarter, BAKER HUGHES acquired a stake in a leading analytics and technology company and launched its first full-service digital solutions platform.
These initiatives could potentially open up new opportunities for the company in the future. Overall, BAKER HUGHES has had an impressive quarter and investors should be encouraged by the company’s performance. The company’s focus on cost management and growth initiatives should provide a solid foundation for future success. Investors should take note of the company’s progress and consider investing in BAKER HUGHES over the long-term.
