Baker Hughes Earnings: Market's Reaction and Outlook Are Misguided; We Raise Our Fair Value by 4%

Baker Hughes reported third-quarter revenue of $7.01 billion, a 1% sequential and year-on-year improvement. Adjusted EBITDA margin declined 40 basis points year on year to 17.7% from oilfield headwinds, though it improved 50 basis points sequentially, thanks to strength in industrial markets.