Baker Hughes Company BKR reported second-quarter 2021 adjusted earnings of 10 cents per share, missing the Zacks Consensus Estimate of 17 cents. However, the bottom line improved drastically from year-ago period’s loss of 5 cents per share.Revenues totaled $5,142 million, beating the Zacks Consensus Estimate of $4,927 million. The figure also increased from the year-ago quarter’s $4,736 million.The lower-than-expected earnings were caused by a decline in cost productivity in Digital Solutions, and increased overall costs and expenses. The negatives were partially offset by higher volumes and excellent performance of the Turbomachinery & Process Solutions business.The company believes that there will be recovery in oil demand and the global economy in second-half 2021. Both were hit badly by the coronavirus pandemic last year. The oilfield service firm also expects the industry to be on a footing for stronger recovery in 2022, as spending and activity levels are gradually gaining momentum despite COVID-related uncertainties. The cautious yet optimistic view from the company’s management can give an upward push to its stock price.Baker Hughes Company Price, Consensus and EPS Surprise Baker Hughes Company price-consensus-eps-surprise-chart | Baker Hughes Company QuoteSegmental PerformanceRevenues from the Oilfield Services (OFS) unit amounted to $2,358 million, down 2% from the year-ago figure of $2,411 million. However, operating income from the segment was $171 million, up from $46 million reported in second-quarter 2020 due to higher volumes. Sales in regions like Asia Pacific, Europe and Latin America increased in the second quarter.Revenues from the Oilfield Equipment (OFE) unit totaled $637 million, down 8% from the prior-year quarter’s $696 million. The segment was affected by lower volumes in the company’s Subsea Drilling Systems business and Surface Pressure Control flow business’ dispositions. The segment reported a profit of $28 million against the year-ago loss of $14 million, thanks to increased cost productivity.Revenues from the Turbomachinery & Process Solutions (TPS) unit increased to $1,628 million from $1,161 million a year ago owing to higher equipment volumes. Also, segmental income increased to $220 million from $149 million in the second quarter of 2020 owing to higher cost productivity and volumes. The positives were partially offset by increased equipment mix.Revenues from the Digital Solutions (DS) segment amounted to $520 million, up 11% from $468 million in the year-ago quarter. Process & Pipeline Services, Waygate Technologies, and Bently Nevada businesses witnessed higher volumes that supported revenue growth. Operating profit at the segment, however, totaled $25 million, down 39% from the year-ago quarter’s $41 million. The segment was affected by a decline in cost productivity.Costs and ExpensesThe company recorded total costs and expenses of $4,948 million for the second quarter, up from the year-ago figure of $4,788 million due to higher cost of revenues and SG&A expenses.OrdersTotal orders from all business segments for second-quarter 2021 were $5,093 million, up 4% year over year due to higher order intakes from segments like Turbomachinery & Process Solutions as well as Digital Solutions.Free Cash FlowThe company generated positive free cash flow of $385 million in the reported quarter compared with $63 million in the year-ago period.Capex & Balance SheetBaker Hughes’ net capital expenditure for the second quarter totaled $121 million.As of Jun 30, 2021, the company had cash and cash equivalents of $3,913 million, down from $4,382 million in the first quarter. At second quarter-end, it had a long-term debt of $6,722 million, down sequentially from $6,733 million, implying a debt to capitalization of 28%.Zacks Rank & Stocks to ConsiderThe company currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space include NexTier Oilfield Solutions Inc. NEX, Cheniere Energy Partners, L.P. CQP and Magellan Midstream Partners, L.P. MMP, each having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.NexTier’s bottom line for 2021 is expected to surge 46.5% year over year.Cheniere Partners’ profits for 2021 are expected to rise 3.9% year over year.Magellan Midstream’s bottom line for 2021 is expected to jump 7.5% year over year. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Magellan Midstream Partners, L.P. (MMP): Free Stock Analysis Report Cheniere Energy Partners, LP (CQP): Free Stock Analysis Report Baker Hughes Company (BKR): Free Stock Analysis Report NexTier Oilfield Solutions Inc. (NEX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research