Market Overview

Weatherford International Rises After Q4 Results


Weatherford International (NYSE: WFT) is up more than two percent in after hours trading after the company announced its fourth quarter results.

The firm reported a Q4 EPS of $0.07 versus the Street estimate of $0.13.

Revenue came in at $3.74 billion, which is slightly below the Street's estimate of $3.86 billion. Sales were down eight percent year-over-year.

Earlier this year Weatherford said that it expected to report a Q4 EPS between $0.05 and $0.08. At the time, the Street estimate was $0.26. Some analysts must have maintained their lofty expectations, however, because the Street estimate was only cut in half. Based on Weatherford's own estimates, some investors might have expected Wall Street's estimates to be lower.

"While the fourth quarter results were disappointing, Weatherford is now actively engaged in transforming itself into a lean, deleveraged and focused organization going into 2014," Bernard J. Duroc-Danner, Chairman, President and Chief Executive Officer, said in a company release.

"Over the last few years, we have been consumed with remediating the material weakness in our tax accounting and managing several governmental investigations. Now that we have both of these distractions behind us, we can focus fully on the future. We have defined three initiatives that will transform Weatherford.

In January, Weatherford attributed its weak expectations to the following factors:

  • "Capital discipline driven activity reductions in Latin America;"
  • "Operational disruptions in the Middle East;"
  • "Severe weather conditions, adversely impacting activity in North America and the North Sea;"
  • "Incremental tax planning items, which increased the fourth quarter effective tax rate to approximately 50%, adding $0.03 to the fourth quarter tax expense. These items are expected to favorably impact the tax rate for the Company going forward."

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

Posted-In: Bernard J. Duroc-Danner weatherford weatherford internationalEarnings News


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