We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Weatherford (WFT) Posts Wider-than-Expected Loss in Q1
Read MoreHide Full Article
Leading oilfield services’ company Weatherford International Ltd. reported first-quarter 2017 adjusted loss of 32 cents per share, wider than the Zacks Consensus Estimate of a loss of 31 cents as well as the year-earlier adjusted loss of 29 cents per share. The loss was mainly attributable to adverse impact of pressure pumping operations as well as lower product sales.
First-quarter total revenue decreased to $1,386.0 million from $1,585.0 million in the year-ago period. The reported figure, however, beat the Zacks Consensus Estimate of $1,370.0 million.
Operational Performance
North American revenues for the first quarter were $490 million, down 9.8% from the year-ago comparable quarter. The shutdown of U.S. pressure pumping operations adversely impacted revenues. Operating loss of $18 million was substantially narrower than an operating loss of $128 million in the prior-year quarter.
Middle East/North Africa/Asia posted revenues of $321 million, down 11.1% or $40 million from the year-earlier quarter. First-quarter operating loss of $3 million compared unfavorably with operating income of $6 million in the prior-year quarter. The decline in revenues is attributable to lower product sales across the region as well as continued pricing pressure and lower product sales.
Europe/West Africa/FSU posted revenues of $244 million, down 5.1% or $13 million from the year-earlier quarter. The decrease was mainly due to the normal first-quarter seasonality in the Norwegian Continental Shelf and parts of Russia. Operating loss in the reported quarter was $10 million, substantially wider than an operating loss of $1 million in the prior-year quarter.
Latin American revenues of $242 million were down $63 million or 20.6% year over year. First-quarter operating income was $9 million compared with $44 million in the year-ago period. Revenues declined primarily due to lower activity as well as project delays in Argentina as a result of a change in the compensation structure for union-based employees.
Weatherford International PLC Price, Consensus and EPS Surprise
As of Mar 31, 2017, Weatherford had $546 million in cash and cash equivalents. It had long-term debt of $7,299 million. Weatherford spent approximately $40 million in capital expenditures during the reported quarter.
Zacks Rank
Weatherford currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are Diamond Offshore Drilling Inc. (DO - Free Report) , China Petroleum & Chemical Corporation and Bellatrix Exploration Ltd. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Diamond Offshore Drilling posted a positive earnings surprise of 341.67% in the preceding quarter. It beat estimates in all of the four trailing quarters with an average positive earnings surprise of 353.28%.
Bellatrix Exploration posted a positive earnings surprise of 240.00% in the preceding quarter. It beat estimates in three of the four trailing quarters with an average positive earnings surprise of 58.54%.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Weatherford (WFT) Posts Wider-than-Expected Loss in Q1
Leading oilfield services’ company Weatherford International Ltd. reported first-quarter 2017 adjusted loss of 32 cents per share, wider than the Zacks Consensus Estimate of a loss of 31 cents as well as the year-earlier adjusted loss of 29 cents per share. The loss was mainly attributable to adverse impact of pressure pumping operations as well as lower product sales.
First-quarter total revenue decreased to $1,386.0 million from $1,585.0 million in the year-ago period. The reported figure, however, beat the Zacks Consensus Estimate of $1,370.0 million.
Operational Performance
North American revenues for the first quarter were $490 million, down 9.8% from the year-ago comparable quarter. The shutdown of U.S. pressure pumping operations adversely impacted revenues. Operating loss of $18 million was substantially narrower than an operating loss of $128 million in the prior-year quarter.
Middle East/North Africa/Asia posted revenues of $321 million, down 11.1% or $40 million from the year-earlier quarter. First-quarter operating loss of $3 million compared unfavorably with operating income of $6 million in the prior-year quarter. The decline in revenues is attributable to lower product sales across the region as well as continued pricing pressure and lower product sales.
Europe/West Africa/FSU posted revenues of $244 million, down 5.1% or $13 million from the year-earlier quarter. The decrease was mainly due to the normal first-quarter seasonality in the Norwegian Continental Shelf and parts of Russia. Operating loss in the reported quarter was $10 million, substantially wider than an operating loss of $1 million in the prior-year quarter.
Latin American revenues of $242 million were down $63 million or 20.6% year over year. First-quarter operating income was $9 million compared with $44 million in the year-ago period. Revenues declined primarily due to lower activity as well as project delays in Argentina as a result of a change in the compensation structure for union-based employees.
Weatherford International PLC Price, Consensus and EPS Surprise
Weatherford International PLC Price, Consensus and EPS Surprise | Weatherford International PLC Quote
Liquidity
As of Mar 31, 2017, Weatherford had $546 million in cash and cash equivalents. It had long-term debt of $7,299 million. Weatherford spent approximately $40 million in capital expenditures during the reported quarter.
Zacks Rank
Weatherford currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are Diamond Offshore Drilling Inc. (DO - Free Report) , China Petroleum & Chemical Corporation and Bellatrix Exploration Ltd. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Diamond Offshore Drilling posted a positive earnings surprise of 341.67% in the preceding quarter. It beat estimates in all of the four trailing quarters with an average positive earnings surprise of 353.28%.
Bellatrix Exploration posted a positive earnings surprise of 240.00% in the preceding quarter. It beat estimates in three of the four trailing quarters with an average positive earnings surprise of 58.54%.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>