Weatherford International Beats on the Top Line

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Weatherford International (NYS: WFT) reported earnings on March 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Weatherford International beat expectations on revenue and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share dropped.

Gross margin dropped, operating margin expanded, and net margin improved.

Revenue details
Weatherford International tallied revenue of $3.71 billion. The 21 analysts polled by S&P Capital IQ expected revenue of $3.58 billion on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $2.92 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.13. The 28 earnings estimates compiled by S&P Capital IQ predicted $0.33 per share. GAAP EPS were -$0.13 for Q4 versus -$0.17 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 24.6%, 260 basis points worse than the prior-year quarter. Operating margin was 10.8%, 80 basis points better than the prior-year quarter. Net margin was -2.6%, 190 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.67 billion. On the bottom line, the average EPS estimate is $0.30.

Next year's average estimate for revenue is $15.38 billion. The average EPS estimate is $1.41.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,040 members out of 1,070 rating the stock outperform, and 30 members rating it underperform. Among 276 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 267 give Weatherford International a green thumbs-up, and nine 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 $22.00.

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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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