5 Reasons the Market Is Wrong to Sell Off Baker Hughes
Okay, let's be real. Baker Hughes' (NASDAQ: BKR) second-quarter earnings weren't great, but they weren't that bad to justify the heavy sell-off on the day for a stock that's now down nearly 30% over the last three months. Moreover, there were some positives, and investors shouldn't count the stock out just yet.
The company suffered a combination of component shortages, inflationary pressures, and a $365 million charge "related to the suspension of substantially all of Baker Hughes' operations in Russia" in the quarter. It all led to adjusted operating profit increasing just 8% year over year to $376 million. After including adjustments (including Russia), Baker Hughes actually reported an operating loss of $25 million. Moreover, CEO Lorenzo Simonelli said, "the demand outlook for the next 12 to 18 months is deteriorating" during the company's earnings call.
It's not great news, but some positives exist, and investors shouldn't write off the stock too quickly.
Source Fool.com
