Baker Hughes’ income up 72%, M&T Bank profits soar in third quarter

Highlights

  • Baker Hughes Company’s (NYSE: BKR) non-GAAP adjusted operating income was US$402 million, up 72% YoY.

  • M&T Bank Corporation’s (NYSE: MTB) net income was US$495 million, up 33%, from US$372 million in the year-ago quarter.

  • The Baker Hughes stock grew 21% YTD, and M&T bank shares jumped 26% YTD.

Baker Hughes Company (NYSE: BKR) stock fell 5.66%, and M&T Bank Corp (NYSE: MTB) stock rose 5.78% at the market close after reporting their third-quarter results on Wednesday.

The BKR stock closed at US$25.35, while the MTB stock closed at US$160.41 at 4 pm ET.

Here’s a look at their quarterly results.

Baker Hughes Company

Baker Hughes’ revenue rose 1% to US$5.049 billion in Q3 2021 from US$5.093 billion in the comparable quarter of 2020.

The non-GAAP adjusted operating income was US$402 million, up 72% YoY.

The GAAP EPS was US$0.01 against a net loss of US$0.25 per share diluted in the previous year's comparable quarter. The adjusted earnings per share were US$0.16.

The cash flow from operating activities was US$416 million, and free cash flow was US$305 million for the September quarter.

Its capital expenditures were US$111 million in the quarter.

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Segment-wise

Oilfield services revenue was US$2.42 billion, up 5% YoY, oilfield equipment revenue was US$603 million, down 17% YoY, turbomachinery & process solutions contributed US$1.56 billion, up 3% YoY, while digital solutions segment contributed US$510 million, up 1% YoY.

The company orders were worth US$5.4 billion in the quarter.

The orders increased due to higher sales in oilfield equipment, oilfield services, and digital solutions, offsetting the decline in turbomachinery and process solutions orders. Overall, equipment orders declined by around 7%, and services orders grew by 18% YTD.

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The stock traded in the range of between US27.66 and US$13.28 in the last 52 weeks.

The Houston, Texas-based Baker Hughes has a market capitalization of US$21 billion.

The company has been around for a century. After the merger with GE Oil and Gas in 2017, it started providing a full range of services from upstream to downstream oil and gas companies.

It has a dividend yield of 2.67% and annualized dividend of US$0.67.

The stock closed at US$25.35 on Oct 20.

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Quarterly results: Baker Hughes Company (NYSE: BKR) and M&T Bank Corporation (NYSE: MTB)

Source – pixabay

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M&T Bank Corporation

Company CFO Darren J. King said that the September quarter saw robust fee income, driven by strong mortgage banking, trust, and brokerage activities.

The bank’s common equity Tier 1 capital ratio was 11.1% as of September 30, 2021, compared to 10.7% at the end of Q2 this year.

The net income (GAAP) was US$495 million, up 33%, against US$372 million in the September quarter of 2020. The GAAP diluted earnings per common share were US$3.69, up 34%, compared to US$2.75 in the previous year’s comparable quarter.

In the second quarter of 2021, the GAAP EPS diluted was US$3.41.

In addition, the net operating income was US$504 million against US$375 million in the September quarter a year ago. The net operating earnings per share diluted was US$3.76, an improvement from US$2.77 in the third quarter of 2020. 

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The M&T Bank’s annualized return on average assets was 1.28%, and the annualized return on average common equity was 12.16%.

The net interest margin was 2.74%, with a net interest income of US$971 million for Q3, 2021.

The New York-headquartered bank has a market capitalization of US$20.6 billion.

Its P/E ratio is 12.33, and the dividend yield is 2.92%, with an annualized dividend of US$4.40. The stock traded in the range of between US$168.27 and US$94.67 in the last 52 weeks.

It closed at US$160.41 on Oct 20, 2021.

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Bottomline

The NYSE Composite index gave a 17.72% return YTD, lower than the stocks year-to-date gain.

In contrast, the BKR stock grew 21% YTD, while the MTB stock gave a 26% return YTD. However, investors must evaluate the companies carefully before investing in stocks.

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