Shares of oil services provider Baker Hughes Incorporated (NYSE: BHI) surged on Friday after the company reported better-than-expected second-quarter profit, driven by 12% increase in revenue. BHIâ€™s second-quarter revenue also beat Street estimates.
Martin Craighead, President and CEO of Baker Hughes, was cautiously optimistic in his market outlook for the rest of year. Craighead said that if commodity prices remain at current levels, activity in onshore U.S. should remain stable. Craighead also said that in the Gulf of Mexico and International, BHI expects continuing improvement as these markets expand.
Baker Hughesâ€™ International business revenue and operating profit saw an improvement in the second quarter, mainly due to strong performance in Europe and the Middle East. BHIâ€™s revenue in North America rose to $2.67 billion from $2.37 billion a year ago.
Craighead noted that BHI achieved 2% sequential growth in operating income despite challenging market conditions in North America.
Baker Hughes reported second-quarter net income of $439 million, or $1 per share, compared to $338 million, or $0.77 per share reported for the same period in the previous year. Excluding one-time items, the companyâ€™s earnings for the quarter were $0.93 per share. Analysts surveyed by Thomson Reuters were on average expecting BHI to report earnings of $0.77 per share for the second quarter.
Revenue for the second quarter rose 12% to $5.33 billion, beating analystsâ€™ estimate of $5.26 billion. Revenue fell 0.5% on a sequential basis.
BHI shares rose to an intra-day high of $47.10 on Friday. The stock ended the day 9.20% higher at $45.59 on above average volume of 20.61 million.
Year-to-date, BHI shares have fallen 6.27%, compared to a gain of 8.34% for the S&P 500.