The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Weatherford International missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Weatherford International booked revenue of $3.82 billion. The 20 analysts polled by S&P Capital IQ predicted revenue of $3.89 billion on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $3.05 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.09. The 29 earnings estimates compiled by S&P Capital IQ anticipated $0.24 per share. GAAP EPS of $0.09 for Q3 were 40% lower than the prior-year quarter's $0.15 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.3%, 350 basis points worse than the prior-year quarter. Operating margin was 8.2%, 150 basis points worse than the prior-year quarter. Net margin was 1.8%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.92 billion. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $15.11 billion. The average EPS estimate is $0.74.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,007 members out of 1,040 rating the stock outperform, and 33 members rating it underperform. Among 225 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 217 give Weatherford International a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Weatherford International is outperform, with an average price target of $16.72.
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