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Baker Hughes Cuts Forecast for Second-Quarter Earnings


Baker Hughes shares fell more than 5% Friday after the company said its second-quarter results would fall short of analyst expectations.

Baker Hughes shares were recently down $4.80, or 5.4 percent, to $84.33.

The oil services company said it expects second-quarter net income of $1.07 to $1.09 a share, down from the $1.17 a share posted in first quarter.

Analysts surveyed by Thomson Financial forecast earnings of $1.18 a share for the latest period, on average.

Baker Hughes said it experienced a "significant deterioration" of activity and profitability in Canada for its drilling and evaluation segment.

Goldman Sachs analyst Daniel Boyd maintained a "Buy" rating and $100 price target on the stock, expecting shares will rise despite a coming pullback for oilfield services companies.

"We remain confident in the company's international growth profile and ability to improve operations at Baker Oil Tools and Baker Atlas," he said.

Sixteen analysts rate the stock at "Buy" or the equivalent, with six assigning a "Neutral" rating.