BKR Set to Report Q2 Earnings: Here's What You Need to Know

Baker Hughes BKR is set to report second-quarter 2025 results on July 22, after the closing bell.

Let us delve into the factors that might have influenced BKR’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.

Highlights of BKR’s Q1 Earnings & Surprise History

In the last reported quarter, the company’s adjusted earnings of 51 cents per share beat the Zacks Consensus Estimate of 47 cents, primarily driven by higher demand for natural gas technology and an improving EBITDA margin.

Earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 11.9%. This is depicted in the graph below:

Baker Hughes Company Price and EPS Surprise

Baker Hughes Company price-eps-surprise | Baker Hughes Company Quote

Estimate Trend for BKR

The Zacks Consensus Estimate for second-quarter earnings per share of 55 cents has witnessed two upward revisions and no downward movement in the past 30 days. The estimated figure suggests a 3.5% decline from the prior-year reported number. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The Zacks Consensus Estimate for revenues of $6.6 billion indicates a 7.1% decline from the year-ago recorded figure.

BKR: Factors to Consider

Per the data from the U.S. Energy Information Administration (“EIA”), the average Cushing, OK, WTI spot prices for April, May and June of this year were $63.54, $62.17 and $68.17 per barrel, respectively. Thus, the overall pricing environment was favorable in the second quarter of 2025, as the breakeven costs of the exploration and production companies in the shale plays were significantly lower. The advantageous crude pricing environment is expected to have favored the demand for oilfield services for assisting exploration and production players in efficiently fixing oil and gas wells.

However, the Zacks Consensus Estimate for BKR’s total orders is pegged at $6.8 billion, lower than $7.5 billion reported in the year-ago quarter. The Zacks Consensus Estimate for BKR’s orders from the Oilfield Services & Equipment business is pegged at $3.5 billion, lower than $4.1 billion reported in the year-ago quarter.

Moreover, the Zacks Consensus Estimate for BKR’s revenues from the Oilfield Services & Equipment business is pegged at $3.5 billion, lower than $4 billion reported in the year-ago quarter.  Our model predicts BKR’s second-quarter revenues from the Oilfield Services and Equipment business segment to decline 10% year over year.

Hence, the weak performance of the Oilfield Services & Equipment segment, the largest revenue contributor, may have adversely impacted its results for the upcoming quarter.

Earnings Whispers for BKR

Our proven model does not conclusively indicate an earnings beat for BKR this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat, which is not the case here, as you will see below.

Earnings ESP: Baker Hughes has an Earnings ESP of +3.03%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: BKR currently carries a Zacks Rank #4 (Sell).

Stocks to Consider

Here are some stocks that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

BP plc BP currently has an Earnings ESP of +2.19% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

BP is scheduled to release second-quarter 2025 earnings on Aug. 5. The Zacks Consensus Estimate for BP’s earnings is pegged at 65 cents per share, suggesting a 35% decrease from the prior-year reported figure.

EOG Resources, Inc. EOG currently has an Earnings ESP of +2.61% and a Zacks Rank #3.

EOG Resources is scheduled to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for EOG’s earnings is pegged at $2.14 per share, implying a 32.3% decline from the prior-year reported figure.

Flotek Industries Inc. FTK currently has an Earnings ESP of +28.00% and a Zacks Rank #3. Flotek is scheduled to release second-quarter earnings on Aug. 5.

The Zacks Consensus Estimate for FTK’s second-quarter 2025 earnings is pegged at 13 cents per share, suggesting a 116.7% increase from the prior-year reported figure.

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This article originally published on Zacks Investment Research (zacks.com).

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