Baker Hughes Incorporated (NYSE:BHI) released its earnings for the three months that formed the second quarter of 2013 this morning before markets opened on Wall Street. The company showed earnings of $0.54 per share for the three months period on revenue of $5.49 billion. Baker Hughes Incorporated (NYSE:BHI) stock closed at $49.80 per share on Thursday’s market.

Baker Hughes Logo

In the run up to the release of this report, analysts studying Baker Hughes Incorporated (NYSE:BHI) were looking for earnings of $65 cents per share from the company on revenues of $5.2 billion. In the second quarter of 2012 the firm managed to earn $1 per share on revenue of $5.3 billion. There’s a lot going wrong at the company, though it still has massive potential.

Major headaches for Baker Hughes

Baker Hughes Incorporated is a company beset by problems. It operates in the oilfield services industry, one fraught with difficult logistics choices and a great deal of on-site risk, but most of the problems at Baker Hughes are coming from inside the company itself.

Revenue at the company has been almost entirely flat for several quarters running despite the increase in the amount of oil and gas drilling going on in the United States. Right now Baker Hughes Incorporated (NYSE:BHI) should be booming. It isn’t, but its investors don’t seem too disgruntled. Instead they’re sitting tight and waiting for the firm to sort itself out.

Ever building strategy

Baker Hughes Incorporated (NYSE:BHI) announced a strategy way back in 2009 that was supposed to transform the company into a lean centralized and professional oilfield services company along the same lines as its rivals. This strategy appears to be the major rationale behind a bet on Baker Hughes, apart from the obvious bet on oil.

The problem is that the company’s big organization shattering strategy has not come into being. The firm is still lagging behind its rivals in a lot of ways, but things appear to be turning around.

So far in 2013, shares in the company have gained just over 20 percent. That puts its gains a shade ahead of those in the S&P 500 and somewhere in the middle in relation to its largest rivals; Weatherford,  Schlumberger and Haliburton.

Investors are getting a little bullish on the company, or at least on the sector, for which it is comparatively cheap. The company will host a conference call to discuss this earnings report at 8 am EST.