Baker Hughes ( BHI) drilled second-quarter earnings targets as the company recognized a huge gain on the sale of its seismic drilling venture with Schlumberger ( SLB). The Houston-based oil services company made $1.4 billion, or $4.14 a share, for the quarter ended June 30, up from the year-ago $218 million, or 64 cents a share. Excluding a gain on the sale of Western Geco and other one-time items, latest-quarter earnings were $1.07 a share, 9 cents ahead of the Thomson Financial consensus estimate. Revenue rose 25% from a year ago and 7% sequentially to $2.2 billion, ahead of the $2.19 Thomson view. "We remain confident in the outlook for sustained market growth for the next several years -- particularly in the Eastern Hemisphere. The entire industry will continue to be challenged to provide energy to meet global demand assuming a continuation of robust global economic growth," said CEO Chad Deaton. "In North America the long-term natural gas market fundamentals, which have driven sustained high levels of drilling activity, remain in place. However, we would not be surprised to see a short-term decline in drilling activity if supplies exceed storage capacity. We believe that any correction in North America gas-directed drilling activity will be relatively short in duration, resulting in a rapid rebalancing of the North American gas market and a return to higher levels of activity." Baker Hughes guided full-year results in line with Wall Street's expectations. The company expects to make $4 to $4.30 a share, excluding the Western Geco sale, on sales growth of 23%-25%.