Baker Hughes Company (NASDAQ:BKR) shareholders are probably feeling a little disappointed, since its shares fell 2.4% to US$30.04 in the week after its latest annual results. The result was positive overall - although revenues of US$26b were in line with what the analysts predicted, Baker Hughes surprised by delivering a statutory profit of US$1.91 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Baker Hughes
Taking into account the latest results, the most recent consensus for Baker Hughes from 23 analysts is for revenues of US$28.0b in 2024. If met, it would imply a decent 10.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 3.6% to US$2.02. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$28.1b and earnings per share (EPS) of US$2.02 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$40.81, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Baker Hughes at US$46.00 per share, while the most bearish prices it at US$34.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Baker Hughes' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 10.0% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 0.4% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.9% annually. Not only are Baker Hughes' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$40.81, 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 2026, and you can see them free on our platform here..
Plus, you should also learn about the 1 warning sign we've spotted with Baker Hughes .
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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.