Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of drilling service company Weatherford International (NYSE: WFT) fell 15% today after reporting earnings.
So what: Third-quarter revenue grew 13% to $3.82 billion and pre-tax net income of $191 million, from $270 million a year ago. Analysts had estimated the company would report $3.9 billion in revenue.
Now what: Management said that they would focus on more profitable growth opportunities and was looking to sell $1 billion in assets. Tax controls also continue to be a problem and the company hopes to complete tax remediation by the end of the month. There are just too many risks here for me to be a buyer, especially when a company has trouble reporting accurate information to investors.
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