Baker Hughes Inc. (BHI - Analyst Report), one of the largest oilfield service companies in the world, reported first-quarter 2015 adjusted loss from continuing operations of 7 cents a share, which compared unfavorably with the Zacks Consensus Estimate of earnings of 47 cents. The bottom line also decreased from the year-ago adjusted profit level of 84 cents a share.

The total revenue of $4,594 million in the quarter declined over 19% from the year-ago level of $5,731 million. The top line also missed the Zacks Consensus Estimate of $5,312 million.

First-Quarter Segmental Highlights

Of Baker Hughes' total quarterly revenue, North America, Europe/Africa/Russia/Caspian, Middle East/Asia-Pacific and Latin America accounted for 44%, 19%, 20% and 11%, respectively. The remainder was generated by the Industrial Services segment.

Europe/Africa/Russia/Caspian, recorded a pre-tax loss margin of 2% as against a profit before-tax margin of 14% in the year-ago quarter. North America reported a pre-tax loss margin of 10% compared with a profit before-tax margin of 9% reported in the year-earlier quarter.

Pre-tax margins at the Middle East/Asia-Pacific segment also came in at 7% as against 12% in the prior-year quarter. Latin America decreased to 7% from 10% in the year-ago period. Industrial Services segment registered lower pre-tax margins at 4% as against 8% in the comparable quarter last year.

Liquidity

At the end of the first quarter, Baker Hughes had $1,606.0 million in cash and cash equivalents, while long-term debt was $3,906.0 million, representing a debt-to-capitalization ratio of 17.9%. Capital expenditures were $315 million and depreciation and amortization expenses were $460 million in the first quarter.

Rank

Baker Hughes carries a Zacks Rank #3 (Hold). Better-ranked stocks from the same space include Valero Energy Partners L.P. (VLP - Snapshot Report), CNOOC Ltd (CEO - Analyst Report) and Hallador Energy Company (HNRG - Snapshot Report). All these stocks sport a Zacks Rank #1 (Strong Buy).

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