Analyst Note| Preston Caldwell |
Baker Hughes posted strong fourth-quarter results, driven by a jump in turbomachinery segment sales (repeating the pattern of the past two years). Revenue was up 9% sequentially, due entirely to the turbomachinery segment's 29% gain. Adjusted operating margins also improved to 8.4% from 4.6% in the prior quarter, driven mostly by turbomachinery. Our fair value estimate and no moat rating are unchanged following the results.