Okay, let's be real. Baker Hughes ' (NASDAQ: BKR) second-quarter earnings weren't great, but they weren't that bad to justify the heavy sell-off on the day for a stock that's now down nearly 30% over the last three months. Moreover, there were some positives, and investors shouldn't count the stock out just yet.
The company suffered a combination of component shortages, inflationary pressures, and a $365 million charge "related to the suspension of substantially all of Baker Hughes' operations in Russia" in the quarter. It all led to adjusted operating profit increasing just 8% year over year to $376 million. After including adjustments (including Russia), Baker Hughes actually reported an operating loss of $25 million. Moreover, CEO Lorenzo Simonelli said, "the demand outlook for the next 12 to 18 months is deteriorating" during the company's earnings call.
It's not great news , but some positives exist, and investors shouldn't write off the stock too quickly.
For further details see:
5 Reasons the Market Is Wrong to Sell Off Baker Hughes