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Weatherford (WFT) Loss Meets Estimates in Q2, Revenues Miss
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Leading oilfield services company, Weatherford International Ltd. , reported second-quarter 2017 adjusted loss of 28 cents per share, in line with the Zacks Consensus Estimate as well as the year-earlier number. The loss was mainly attributable to adverse impact of pressure pumping operations and lower product sales.
Second-quarter total revenue decreased to $1,363.0 million from $1,402.0 million in the year-ago quarter and also lagged the Zacks Consensus Estimate of $1,417.0 million.
Weatherford International PLC Price, Consensus and EPS Surprise
North American revenues for the second quarter were $475 million, up 18.5% from the year-ago comparable quarter. Increased drilling and completion activities resulted in higher revenues from all product lines in the U.S. Operating income during the quarter was $2 million. The company reported an operating loss of $101 million in the prior-year quarter.
Middle East/North Africa/Asia posted revenues of $340 million, down 15% or $60 million from the year-earlier period. Second-quarter operating income of $9 million decreased from $50 million in the prior-year quarter. The decline in revenues is attributable to lower product sales across the region and continued pricing pressure.
Europe/West Africa/FSU posted revenues of $244 million, down from $243 million from the year-earlier quarter. The decrease was mainly due to lower Secure Drilling product sales in Europe. Operating income in the reported quarter was $5 million compared to an operating income of $1 million in the prior-year quarter.
Latin American revenues of $203 million were down $46 million or 18.5% year over year. Second-quarter operating loss was $35 million compared with operating income of $1 million in the year-ago period. Revenues declined primarily due to a change in revenue accounting in Venezuela.
Liquidity
As of Jun 30, Weatherford had $584 million in cash and cash equivalents. Long-term debt amounted $7,538 million. The company spent approximately $42 million in capital expenditures during the reported quarter.
Q2 Price Performance
During Apr–Jun 2017, Weatherford’s shares underperformed the industry. During the aforesaid period, the stock has lost 41.8% compared with a 20.3% decline for the broader industry.
Zacks Rank
Currently, Weatherford carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the same space are Enbridge Energy, LP , Braskem S.A. (BAK - Free Report) and TransCanada Corp (TRP - Free Report) . While Braskem and TransCanada sport a Zacks Rank #1 (Strong Buy), Enbridge Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enbridge Energy delivered a positive earnings surprise of 128.57% in the preceding quarter. The company beat estimates in three of the trailing four quarters with an average positive earnings surprise of 38.22%.
Braskem delivered a positive earnings surprise of 107.79% in the quarter ending September 2016.
TransCanada delivered a positive earnings surprise of 12.00% in the preceding quarter. It surpassed estimates in two of the trailing four quarters with an average positive earnings surprise of 4.06%.
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Weatherford (WFT) Loss Meets Estimates in Q2, Revenues Miss
Leading oilfield services company, Weatherford International Ltd. , reported second-quarter 2017 adjusted loss of 28 cents per share, in line with the Zacks Consensus Estimate as well as the year-earlier number. The loss was mainly attributable to adverse impact of pressure pumping operations and lower product sales.
Second-quarter total revenue decreased to $1,363.0 million from $1,402.0 million in the year-ago quarter and also lagged the Zacks Consensus Estimate of $1,417.0 million.
Weatherford International PLC Price, Consensus and EPS Surprise
Weatherford International PLC Price, Consensus and EPS Surprise | Weatherford International PLC Quote
Operational Performance
North American revenues for the second quarter were $475 million, up 18.5% from the year-ago comparable quarter. Increased drilling and completion activities resulted in higher revenues from all product lines in the U.S. Operating income during the quarter was $2 million. The company reported an operating loss of $101 million in the prior-year quarter.
Middle East/North Africa/Asia posted revenues of $340 million, down 15% or $60 million from the year-earlier period. Second-quarter operating income of $9 million decreased from $50 million in the prior-year quarter. The decline in revenues is attributable to lower product sales across the region and continued pricing pressure.
Europe/West Africa/FSU posted revenues of $244 million, down from $243 million from the year-earlier quarter. The decrease was mainly due to lower Secure Drilling product sales in Europe. Operating income in the reported quarter was $5 million compared to an operating income of $1 million in the prior-year quarter.
Latin American revenues of $203 million were down $46 million or 18.5% year over year. Second-quarter operating loss was $35 million compared with operating income of $1 million in the year-ago period. Revenues declined primarily due to a change in revenue accounting in Venezuela.
Liquidity
As of Jun 30, Weatherford had $584 million in cash and cash equivalents. Long-term debt amounted $7,538 million. The company spent approximately $42 million in capital expenditures during the reported quarter.
Q2 Price Performance
During Apr–Jun 2017, Weatherford’s shares underperformed the industry. During the aforesaid period, the stock has lost 41.8% compared with a 20.3% decline for the broader industry.
Zacks Rank
Currently, Weatherford carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the same space are Enbridge Energy, LP , Braskem S.A. (BAK - Free Report) and TransCanada Corp (TRP - Free Report) . While Braskem and TransCanada sport a Zacks Rank #1 (Strong Buy), Enbridge Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enbridge Energy delivered a positive earnings surprise of 128.57% in the preceding quarter. The company beat estimates in three of the trailing four quarters with an average positive earnings surprise of 38.22%.
Braskem delivered a positive earnings surprise of 107.79% in the quarter ending September 2016.
TransCanada delivered a positive earnings surprise of 12.00% in the preceding quarter. It surpassed estimates in two of the trailing four quarters with an average positive earnings surprise of 4.06%.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>