Leading oilfield services company Weatherford International Ltd.’s posted fourth-quarter 2016 adjusted loss of 32 cents per share, narrower than the Zacks Consensus Estimate of a loss of 33 cents. Proactive cost management resulted in the narrower loss.
However, Weatherford’s loss widened from the year-earlier quarter adjusted loss of 13 cents per share amid the continued weakness in oil prices.
Total revenue of $1,406.0 million, on the other hand, came in below the Zacks Consensus Estimate of $1,415.0 million. The reported figure also decreased significantly from $2,012.0 million in the year-ago period.
Total revenue in 2016 was down 39% year over year at $5,749 million but below the Zacks Consensus Estimate of $5,756 million.
Operational Performance
North American revenues for the fourth quarter were $485 million, down 30.6% sequentially but up 8% on an annualized basis. Operating loss for the quarter was $58 million, narrower than an operating loss of $68 million in the year-ago quarter.
Middle East/North Africa/Asia recorded revenues of $363 million, up 10.3% sequentially but down 20% year over year. The quarterly operating income of $9 million was down 80% from the prior-year quarter. The division had posted operating loss of $8 million in the preceding quarter.
Europe/West Africa/FSU posted revenues of $214 million, down 5% sequentially and 36.5% from the year-earlier quarter. Operating loss for the quarter was $8 million. The division had posted operating income of $38 million in the year-ago quarter.
Latin America revenues of $250 million were down 2% sequentially and 33.5% year over year. Fourth-quarter operating income of $6 million plunged 57% sequentially and 90% year over year.
Liquidity
As of Dec 31, 2016, Weatherford had $1,037 million in cash and cash equivalents. The company’s long-term debt was $7,403 million. Weatherford spent approximately $68 million in capital expenditures during the reported quarter.
Zacks Rank
Weatherford currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the same space include Denbury Resources Inc. , Holly Energy Partners LP and Noble Midstream Partners L.P. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Denbury Resources posted a positive earnings surprise of 100.00% in the last reported quarter. It had an average earnings surprise of 283.33% in the four trailing quarters.
Holly Energy Partners posted a negative earnings surprise of 23.26% in the preceding quarter. It had an average negative earnings surprise of 0.96% in the four trailing quarters.
Noble Midstream Partners posted a negative earnings surprise of 77.78% in the last reported quarter.
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Weatherford's (WFT) Posts Narrower-than-Expected Q4 Loss
Leading oilfield services company Weatherford International Ltd.’s posted fourth-quarter 2016 adjusted loss of 32 cents per share, narrower than the Zacks Consensus Estimate of a loss of 33 cents. Proactive cost management resulted in the narrower loss.
However, Weatherford’s loss widened from the year-earlier quarter adjusted loss of 13 cents per share amid the continued weakness in oil prices.
Total revenue of $1,406.0 million, on the other hand, came in below the Zacks Consensus Estimate of $1,415.0 million. The reported figure also decreased significantly from $2,012.0 million in the year-ago period.
Total revenue in 2016 was down 39% year over year at $5,749 million but below the Zacks Consensus Estimate of $5,756 million.
Operational Performance
North American revenues for the fourth quarter were $485 million, down 30.6% sequentially but up 8% on an annualized basis. Operating loss for the quarter was $58 million, narrower than an operating loss of $68 million in the year-ago quarter.
Middle East/North Africa/Asia recorded revenues of $363 million, up 10.3% sequentially but down 20% year over year. The quarterly operating income of $9 million was down 80% from the prior-year quarter. The division had posted operating loss of $8 million in the preceding quarter.
Europe/West Africa/FSU posted revenues of $214 million, down 5% sequentially and 36.5% from the year-earlier quarter. Operating loss for the quarter was $8 million. The division had posted operating income of $38 million in the year-ago quarter.
Latin America revenues of $250 million were down 2% sequentially and 33.5% year over year. Fourth-quarter operating income of $6 million plunged 57% sequentially and 90% year over year.
Weatherford International PLC Price, Consensus and EPS Surprise
Weatherford International PLC Price, Consensus and EPS Surprise | Weatherford International PLC Quote
Liquidity
As of Dec 31, 2016, Weatherford had $1,037 million in cash and cash equivalents. The company’s long-term debt was $7,403 million. Weatherford spent approximately $68 million in capital expenditures during the reported quarter.
Zacks Rank
Weatherford currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the same space include Denbury Resources Inc. , Holly Energy Partners LP and Noble Midstream Partners L.P. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Denbury Resources posted a positive earnings surprise of 100.00% in the last reported quarter. It had an average earnings surprise of 283.33% in the four trailing quarters.
Holly Energy Partners posted a negative earnings surprise of 23.26% in the preceding quarter. It had an average negative earnings surprise of 0.96% in the four trailing quarters.
Noble Midstream Partners posted a negative earnings surprise of 77.78% in the last reported quarter.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>