Why Weatherford International's Shares Got Crushed

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of drilling service company Weatherford International (NYS: WFT) fell 15% today after reporting earnings.

So what: Third-quarter revenue grew 13% to $3.82 billion and pre-tax net income of $191 million, from $270 million a year ago. Analysts had estimated the company would report $3.9 billion in revenue.

Now what: Management said that they would focus on more profitable growth opportunities and was looking to sell $1 billion in assets. Tax controls also continue to be a problem and the company hopes to complete tax remediation by the end of the month. There are just too many risks here for me to be a buyer, especially when a company has trouble reporting accurate information to investors.

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The article Why Weatherford International's Shares Got Crushed originally appeared on Fool.com.

Fool contributor Travis Hoium has no positions in the stocks mentioned above. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no positions in the stocks mentioned above. 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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