Baker Hughes (BHI) Gains Despite Downside Guidance

NEW YORK (TheStreet) -- Baker Hughes (BHI) rose 2% to $52.85 Friday despite issuing a downside guidance that falls below consensus estimates.

Baker Hughes issued fourth-quarter guidance with the company set to earn between 70 cents to 80 cents a share, excluding some Iraqi disurptions. Analysts surveyed by Capital IQ expected 83 cents a share in the quarter.

The oil company said a protest incident forced a suspension of operations at a facility in Iraq, which will cut into profit. Baker Hughes expects the incident to cut profits by about $80 million. With the Iraq disruption, Baker Hughes now expects earnings per share of 60 cents to 62 cents.

Baker Hughes also announced it had repurchased about 6.3 million shares of common stock totaling $350 million during the fourth quarter.

TheStreet Ratings team rates BAKER HUGHES INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate BAKER HUGHES INC (BHI) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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