Baker Hughes missed analysts’ expectations for their Q3 results, despite posting third-quarter net profit that more than doubled to $706 million from $255 million last year, and revenue grew 27 percent to $5.18 billion.
The firm, which ranks as the third largest oilfield services provider in the world by size, saw margin squeezed in international markets, despite having raised expectations that profit would improve. US shale gas exploration and better than predicted tax rates compensated for some of the margin squeeze.
The results sent Baker Hughes’s stock tumbling 10% before recovering to trade at 7.67% down at pixel time.
The company is confident of bouncing back in Q4 on the back of work in the Middle East, and Saudi Arabia in particular.
“We feel pretty confident that the fourth quarter will be there if we just deliver the product that’s been sold,” Baker Hughes Chairman and Chief Executive Chad Deaton told investors in a conference call following the results.
