The 10-second takeaway
For the quarter ended March 31 (Q1), Weatherford International missed slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank significantly.
Margins dropped across the board.
Weatherford International reported revenue of $3.84 billion. The 19 analysts polled by S&P Capital IQ expected revenue of $3.90 billion on the same basis. GAAP reported sales were 6.9% higher than the prior-year quarter's $3.59 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 $0.15. The 30 earnings estimates compiled by S&P Capital IQ anticipated $0.15 per share. Non-GAAP EPS of $0.15 for Q1 were 40% lower than the prior-year quarter's $0.25 per share. GAAP EPS of $0.03 for Q1 were 81% lower than the prior-year quarter's $0.16 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 11.3%, much worse than the prior-year quarter. Operating margin was 8.3%, 200 basis points worse than the prior-year quarter. Net margin was 0.6%, 280 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.95 billion. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $16.32 billion. The average EPS estimate is $0.85.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 997 members out of 1,027 rating the stock outperform, and 30 members rating it underperform. Among 197 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 189 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 $14.30.
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