What happened

Shares of oil services company Weatherford International (NYSE: WFT) are down 20% as of 12:15 p.m. EDT today. While there was no news today, this drop is a continuation of yesterday's slide after the company produced yet another quarter of losses. 

So what

In case you missed it, Weatherford reported earnings yesterday, noting it failed to meet analyst expectations for revenue and missed its own internal targets for cash flow. Management did note that it made significant progress in cutting costs, which helped boost margins at a time when earnings were flat. 

Perhaps the most discouraging thing isn't that it missed expectations this quarter, but it is a company whose management has consistently promised a turnaround, only to have its results repeatedly come up short. It would seem that investors have had enough of this and are fleeing until the company can prove that it is capable of meeting management targets.

Pressure pumping equipment.

Image source: Getty Images.

Now what

It's hard to believe that what was once one of the worlds five largest oil services companies with a market cap of more than $30 billion is now trading in penny stock territory and has a market cap of just barely above $1 billion. But that's what happens when you don't post a positive net income result in over four years and are saddled with an onerous debt load that has the business constantly teetering on the brink of solvency.

While CEO Mark McCollum says that the company has made some progress, the path to getting back to profitable operations is going to take some time. Until management can prove once and for all that it is capable of digging itself out of this hole, investors should stay away.