The 10-second takeaway
For the quarter ended June 30 (Q2), Weatherford International met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share grew. GAAP loss per share contracted.
Gross margins contracted, operating margins grew, net margins expanded.
Weatherford International logged revenue of $3.87 billion. The 20 analysts polled by S&P Capital IQ foresaw sales of $3.87 billion on the same basis. GAAP reported sales were 3.2% higher than the prior-year quarter's $3.75 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.15. The 30 earnings estimates compiled by S&P Capital IQ forecast $0.15 per share. Non-GAAP EPS were $0.15 for Q2 against -$0.99 per share for the prior-year quarter. GAAP EPS were -$0.15 for Q2 compared to -$1.11 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 10.5%, much worse than the prior-year quarter. Operating margin was 7.4%, 120 basis points better than the prior-year quarter. Net margin was -3.1%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $4.10 billion. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $16.15 billion. The average EPS estimate is $0.81.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 991 members out of 1,022 rating the stock outperform, and 31 members rating it underperform. Among 192 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 186 give Weatherford International a green thumbs-up, and six 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 $15.55.
Is Weatherford International the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add Weatherford International to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.