These shares were owned by Baker Hughes Oilfield services firm (BKR), have seen significant gains in their stock prices over the past three month. However, the company’s third-quarter results lagged analyst estimates, raising investors’ concerns. Can the stock’s momentum be sustained given the industry’s low growth? Let’s discuss.Baker Hughes Company (NYSE:) in Houston, Tex., is an energy technology company that serves energy and industrial customers worldwide. It operates through four segments: Oilfield Services (OFS); Oilfield Equipment (OFE); Turbomachinery & Process Solutions (TPS); and Digital Solutions (DS). The company also has a strategic partnership with Air Products and Chemicals, Inc., to develop hydrogen compression system.
The stock has surged 10.8% in price over the past month and 26.5% over the past three months to close yesterday’s trading session at $25.35, driven by investors’ optimism about the company’s differentiated AI-based technology solutions. However, the company’s lower-than-expected third-quarter results caused investors some concern. After the quarterly results, which showed a disappointing earnings surprise, investors were concerned that Wednesday’s stock price would fall 4%.
The company’s $5.09 billion in third-quarter revenue fell short of the $5.34 billion consensus estimate, due to the current supply chain crisis and high raw material costs. These conditions could negatively impact the company’s share price in the near term.
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