What caused BKR's Q3 earnings to fall short of forecasts?

Baker Hughes's (BKR) Q3 earnings fell short of forecasts due to lower North American activity and a pause in the approval of LNG export projects in the US, despite strong international demand and growth in the Industrial Energy Technology segment. 1. **Impact of Lower North American Activity**: Baker Hughes reduced its outlook for spending by oil producers in North America, citing lower drilling activity by regional companies. This softness in the North American market is a trend noted by other oilfield service companies, leading to a decline in North American revenue projections. Despite this, the company raised its full-year revenue and profit estimates, banking on strong international growth and demand for gas equipment to offset the weakness in North America. 2. **Pause in LNG Export Projects**: There is a delay in the approval of applications to export LNG from the US, which has affected Baker Hughes's LNG business. However, the company remains optimistic about the future, emphasizing margin expansion and cash flow management. The pause in LNG export projects and the resulting impact on BKR's earnings can be attributed to the broader regulatory and market dynamics in the LNG sector. In summary, the combination of lower North American activity and the pause in LNG export projects in the US contributed to Baker Hughes's Q3 earnings falling short of forecasts.