NEW YORK (TheStreet) -- Shares of Baker Hughes (BHI) were jumping 6.37% to $55.47 in mid-morning trading on Tuesday after the company reported a narrower-than-anticipated loss for the 2016 third quarter.
Before the market open, the Houston-based oilfield services provider posted an adjusted net loss of 15 cents per share, while analysts were expecting a loss of 44 cents per share. Revenue for the period was $2.35 billion, below analysts' estimates of $2.41 billion.
"Revenue for the third quarter declined 2% sequentially, primarily as a result of steep activity reductions and project delays in our Gulf of Mexico, West Africa, and Norwegian deepwater operations," CEO Martin Craighead said in a statement.
But Baker Hughes said it plans to reduce annualized costs by $650 million, above its prior target of $500 million.
The company also said it expects fourth-quarter activity in North America to "modestly increase" as customers slowly begin to ramp up activity in what remains a "tough pricing environment."
Nomura maintained a "neutral" rating and $43 price target on the stock after the "solid" quarterly results.
"BHI posted a solid 3Q earnings beat driven by improved operational efficiency. Margins beat Nomura's forecasts in all geo-markets, as the company's disciplined cost-cutting efforts continue to have a positive effect," the firm said in a research note this morning.
"As expected, BHI delivered a consistent message with respect to the activity outlook and highlighted expectations of a modest pick-up in NAM while the international markets lag behind," Nomura added.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: BHI