Next week on the stock market: Baker Hughes, Fevertree, Verizon

Baker Hughes reported strong business growth in each of the first three quarters of 2023. That was reflected in revenue and profit as well as increased order intake in both Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET). The midpoint of guidance for the final three months suggests that revenue has increased by around 17% to $6.9bn, with underlying cash profit (EBITDA) up about 14% to $1.1bn.

Looking to 2024, it’s a complex picture. Oil prices have cooled lately, but sustained tension in the Middle East could see this trend reverse. Meanwhile, The Conference of Parties has, for the first time, called for a transition away from fossil fuels at last month’s COP28 in Dubai. Continuing softness in US domestic drilling activity is also something to be mindful of. But Baker Hughes doesn’t have all its eggs in one basket and continues to innovate in both traditional and new energy technologies.

Fevertree’s results in recent times have been anything but dull. Back at the half-year mark, sales came in at around £175.6mn, 2% weaker than the market was expecting. Unseasonably poor weather in the UK was blamed for a lacklustre summer trading period. And coupled with falling margins, the group lowered both its top and bottom line outlook for the full year.

Markets are now expecting full-year revenue to grow by around 11.6% to £384mn. Successful expansion in its growing US and European markets will be key to hitting this target. Any further disappointments in full-year results next week would likely put more pressure on the tonic maker’s valuation, which is down around 60% over the last 2 years.

Verizon has built up a bit of traction and investors will be hoping for continued momentum in next week’s fourth-quarter results. Revenue’s expected to come in at around $34.55bn with earnings per share of $1.08.

One of the key questions for investors is whether Verizon can deliver continued and sustained post-paid wireless phone subscriber growth. In this regard, the consumer unit has been struggling, offset somewhat by growth in business users. The trend is improving off the back of new initiatives and leadership changes, but growth continues to lag peers. We’ll be watching for commentary on how Verizon plans to drive further improvements over the coming year.