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Baker Hughes Co BKR

Rating as of

Morningstar’s Analysis

Valuation
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Turbomachinery Continues to Drive Baker Hughes' Operating Margins in First Quarter

Preston Caldwell Equity Analyst

Analyst Note

| Preston Caldwell |

Baker Hughes experienced its typical seasonal slowdown in the first quarter. Revenue was down 13% sequentially due mostly to the turbomachinery segment, where revenue was down 24% sequentially (in line with the average first-quarter drop over the last three years). Adjusted operating margins dropped sequentially to 5.6% from 8.4% owing to the fall in volumes. Our fair value and no-moat rating are unchanged following the results.

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Company Profile

Business Description

Baker Hughes in its current form originated in 2017 from the merger of Baker Hughes with GE Oil & Gas. Baker Hughes’ history of oilfield innovation stretches back over a century, and with the combination with GE, the company now can offer the full spectrum of services to oil and gas companies, from upstream to downstream.

Contact
17021 Aldine Westfield Road
Houston, TX, 77073-5101
T +1 713 439-8600
Sector Energy
Industry Oil & Gas Equipment & Services
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Hard Assets
Employees 54,000

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