Markets
HEP

Weatherford's (WFT) Posts Narrower-than-Expected Q4 Loss

Leading oilfield services company Weatherford International Ltd. 's WFT posted fourth-quarter 2016 adjusted loss of 32 cents per share, narrower than the Zacks Consensus Estimate of a loss of 33 cents. Proactive cost management resulted in the narrower loss.

However, Weatherford's loss widened from the year-earlier quarter adjusted loss of 13 cents per share amid the continued weakness in oil prices .

Total revenue of $1,406.0 million, on the other hand, came in below the Zacks Consensus Estimate of $1,415.0 million. The reported figure also decreased significantly from $2,012.0 million in the year-ago period.

Total revenue in 2016 was down 39% year over year at $5,749 million but below the Zacks Consensus Estimate of $5,756 million.

Operational Performance

North American revenues for the fourth quarter were $485 million, down 30.6% sequentially but up 8% on an annualized basis. Operating loss for the quarter was $58 million, narrower than an operating loss of $68 million in the year-ago quarter.

Middle East/North Africa/Asia recorded revenues of $363 million, up 10.3% sequentially but down 20% year over year. The quarterly operating income of $9 million was down 80% from the prior-year quarter. The division had posted operating loss of $8 million in the preceding quarter.

Europe/West Africa/FSU posted revenues of $214 million, down 5% sequentially and 36.5% from the year-earlier quarter. Operating loss for the quarter was $8 million. The division had posted operating income of $38 million in the year-ago quarter.

Latin America revenues of $250 million were down 2% sequentially and 33.5% year over year. Fourth-quarter operating income of $6 million plunged 57% sequentially and 90% year over year.

Weatherford International PLC Price, Consensus and EPS Surprise

Weatherford International PLC Price, Consensus and EPS Surprise | Weatherford International PLC Quote

Liquidity

As of Dec 31, 2016, Weatherford had $1,037 million in cash and cash equivalents. The company's long-term debt was $7,403 million. Weatherford spent approximately $68 million in capital expenditures during the reported quarter.

Zacks Rank

Weatherford currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the same space include Denbury Resources Inc. DNR , Holly Energy Partners LP HEP and Noble Midstream Partners L.P. NBLX . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Denbury Resources posted a positive earnings surprise of 100.00% in the last reported quarter. It had an average earnings surprise of 283.33% in the four trailing quarters.

Holly Energy Partners posted a negative earnings surprise of 23.26% in the preceding quarter. It had an average negative earnings surprise of 0.96% in the four trailing quarters.

Noble Midstream Partners posted a negative earnings surprise of 77.78% in the last reported quarter.

The Best Place to Start Your Stock Search

Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks - absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Weatherford International PLC (WFT): Free Stock Analysis Report

Holly Energy Partners, L.P. (HEP): Free Stock Analysis Report

Denbury Resources Inc. (DNR): Free Stock Analysis Report

Noble Midstream Partners LP (NBLX): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

HEP

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More