Shares of Weatherford International PLC (NYSE: WFT) slid more than 11% by 10:30 a.m. EDT on Monday after the company reported lackluster third-quarter results.
Weatherford International reported mixed results in the third quarter. Revenue came in at $1.44 billion, which was 1.4% lower year over year and missed analysts' expectations by $80 million. Driving the weaker result were lower activity levels in Canada due to pressure on oil prices in that country as a result of its continued pipeline issues.
On a more positive note, the company did generate higher revenue from service projects in Latin America, which helped offset some of its weakness in Canada. Because of that, the company's adjusted net loss came in at $103 million, or $0.10 per share, which was $0.03 per share better than the consensus estimate. Furthermore, that's a vast improvement from both the second quarter of 2018 and the year-ago period when Weatherford posted much wider adjusted net losses. However, with another loss in the books, Weatherford has not reported a quarterly profit in four years.
In discussing the quarter, CEO Mark McCollum stated that he was "pleased with our third-quarter operating results, which once again demonstrate the strength of our transformation and its positive impact on our bottom line." And he believes that the company will be able to achieve its transformation goal by the end of next year.
But investors remain skeptical, especially considering that the company did fall short of its revenue and cash flow goals due to some supply chain issues and manufacturing inefficiencies. Because of that, they would likely be better off avoiding this oil stock until the company demonstrates that it can achieve its goal.