Baker Hughes Earnings: Self-Help Initiatives and Volume Leverage Drive Margin Expansion

Baker Hughes put forth strong second-quarter results that blew past our top-line expectations, particularly in its industrial and energy technology or IET segment, which grew revenue by 28% year on year. That said, adjusted EBITDA was relatively in line with what we earmarked. Based on results and management’s strong guidance, we raise our fair value estimate to $42 from $39 previously.