2024-01-27 05:10:00 ET
Summary
- Baker Hughes shares fell nearly 5% after reporting disappointing results and guidance, adding to a year of underperformance.
- The company's Oil Field Services and Equipment division delivered solid results, but the outlook was cautious.
- Concerns about the long-term growth of the Industrial & Energy Technology division and increased regulatory scrutiny are weighing on the company's potential multiple expansion.
Baker Hughes ( BKR ) shares fell by nearly 5% on Wednesday after reporting disappointing results and guidance, adding to a year of underperformance with shares only up about 5%. The stock has been a disappointing performer since October , when I rated it a “buy,” arguing its solid growth prospects justified its premium valuation. With shares down 15% and new results, it is a good time to evaluate whether the thesis is broken or whether investors should continue to buy shares. While I am reducing my price target, given how much shares have fallen, I would still be a buyer....
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Baker Hughes: Q4 Earnings, Attractive Despite LNG Uncertainty