NEW YORK (TheStreet) -- Baker Hughes (BHI) shares popped on Tuesday after fourth-quarter results beat expectations. By late afternoon, the stock had climbed 4.4% to $56.51, and 7.5 million shares had changed hands compared to its three-month average daily trading volume of 4 million.
Before the bell, the oilfield support company reported fourth-quarter net income of 62 cents a share, beating Thomson Reuters consensus by a penny. Revenue for the December-ended quarter was $5.86 billion, 10.2% higher than the year-ago period and nearly $200 million higher than analyst expectations.
For fiscal 2013, the Houston-based business reported record revenue of $22.36 billion, 5% higher than the year earlier, and driven by a surge in demand in the Middle East, Asia Pacific and Africa. In the North American segment, the largest geographic region by revenue, sales grew 7.2%.
"In 2013, we posted record revenue driven largely by the Eastern Hemisphere where our operations grew by 14% compared to 2012," said CEO Martin Craighead in a statement. "This success can largely be attributed to meaningful share gains in high growth markets such as the Middle East and Africa. In our Middle East/Asia Pacific segment, we grew revenue 24% during the year, with solid improvement in profitability compared to last year."
TheStreet Ratings team rates BAKER HUGHES INC as a Buy with a ratings score of B. The team has this to say about their recommendation:
"We rate BAKER HUGHES INC (BHI) a BUY. This is driven by some important positives, 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 solid stock price performance, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."