Weatherford International Increases Sales but Misses Revenue Estimate

Seth Jayson, The Motley Fool
Updated

Weatherford International (NYS: WFT) reported earnings on May 2. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q1), Weatherford International missed slightly on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank significantly.


Margins dropped across the board.

Revenue details
 Weatherford International reported revenue of $3.84 billion. The 19 analysts polled by S&P Capital IQ expected revenue of $3.90 billion on the same basis. GAAP reported sales were 6.9% higher than the prior-year quarter's $3.59 billion.

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 $0.15. The 30 earnings estimates compiled by S&P Capital IQ anticipated $0.15 per share. Non-GAAP EPS of $0.15 for Q1 were 40% lower than the prior-year quarter's $0.25 per share. GAAP EPS of $0.03 for Q1 were 81% lower than the prior-year quarter's $0.16 per share.

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 11.3%, much worse than the prior-year quarter. Operating margin was 8.3%, 200 basis points worse than the prior-year quarter. Net margin was 0.6%, 280 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $3.95 billion. On the bottom line, the average EPS estimate is $0.17.

Next year's average estimate for revenue is $16.32 billion. The average EPS estimate is $0.85.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 997 members out of 1,027 rating the stock outperform, and 30 members rating it underperform. Among 197 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 189 give Weatherford International a green thumbs-up, and eight 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 $14.30.

Is Weatherford International the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.

The article Weatherford International Increases Sales but Misses Revenue Estimate originally appeared on Fool.com.

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. The Motley Fool has no position in any of the stocks mentioned. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement