Baker Hughes shares fall after adjusted earnings and revenue miss expectations as demand deteriorates

Shares of Baker Hughes Co. BKR,
+3.90%
fell 4.3% in premarket trading on Wednesday after the oilfield products and services company reported second-quarter results that beat expectations as component shortages, chain inflation procurement and the suspension of Russian operations weighed on results. Net losses widened to $839 million, or 84 cents per share, from $68 million, or 8 cents per share, a year ago. Excluding one-time items, adjusted earnings per share rose 10 cents to 11 cents, but missed the FactSet consensus of 21 cents. Revenue fell 1.8% to $5.05 billion, below the FactSet consensus of $5.34 billion. Free cash flow fell 61.8% to $147 million, missing expectations by $235 million. The company said the demand outlook for the next 12 to 18 months is “deteriorating” as inflation erodes consumer purchasing power and the Federal Reserve raises interest rates, but years of underinvestment and the need to replace Russian barrels can keep commodity prices high. levels. The stock has fallen 20.1% in the past three months to Tuesday, while SPDR Energy Select Sector ETF XLE,
+3.08%
fell 10.4% and the S&P 500 SPX,
+2.76%
lost 11.7%.

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