Baker Hughes Company Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Investors in Baker Hughes Company (NASDAQ:BKR) had a good week, as its shares rose 6.0% to close at US$46.18 following the release of its yearly results. Revenues were US$28b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$2.98, an impressive 24% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Baker Hughes

Taking into account the latest results, Baker Hughes' 19 analysts currently expect revenues in 2025 to be US$27.9b, approximately in line with the last 12 months. Statutory earnings per share are expected to descend 15% to US$2.57 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$28.0b and earnings per share (EPS) of US$2.52 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$49.02. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Baker Hughes at US$55.00 per share, while the most bearish prices it at US$34.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Baker Hughes' revenue growth is expected to slow, with the forecast 0.3% annualised growth rate until the end of 2025 being well below the historical 4.8% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that Baker Hughes is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Baker Hughes' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$49.02, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Baker Hughes going out to 2027, and you can see them free on our platform here..

You can also see whether Baker Hughes is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.