Baker Hughes (BHI) Stock Gains on Mixed Q2 Results

NEW YORK (TheStreet) -- Shares of Baker Hughes  (BHI) are up 3.30% to $46 in pre-market trading on Thursday after reporting a wider-than-expected loss in the second quarter but revenue that topped estimates. 

Before the market open, the oilfield services provider reported an adjusted loss of 90 cents per share, wider than the loss of 62 cents per share projected by analysts. 

Revenue fell 39.3% year-over-year to $2.41 billion in the most recent period but beat analysts' estimates of $2.32 billion. 

Baker Hughes said it was hurt by a "continued steep decline" in drilling activity and pricing, and does not expect drilling activity in North America to "meaningfully increase" in the second half of the year.

But the company does anticipate that margins will improve due to restructuring efforts in the most recent quarter. 

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.

Baker Hughes's weaknesses include its disappointing return on equity, poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

You can view the full analysis from the report here: BHI

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 article's author. 

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