Earnings Results under Review: Weatherford International plc (NYSE: WFT)

On Monday, Shares of Weatherford International plc (NYSE: WFT) showed the bullish trend with a higher momentum of 1.97% and ended its trading session at $0.80. The company traded total volume of 10,590,120 shares as contrast to its average volume of 21.60M shares. The company has a market value of $780.70M and about 1.00B shares outstanding.

Weatherford International plc (WFT) stated a net loss of $199.0M, or a loss of $0.20 per share, for the third quarter of 2018. This compares to a net loss of $256.0M, or a loss of $0.26 per share, for the third quarter of 2017.

The non-GAAP net loss for the third quarter of 2018, which excludes unusual charges and credits, was $103.0M, or $0.10 diluted loss per share. This compares to a $156.0M non-GAAP net loss in the prior quarter, or $0.16 diluted loss per share, and a $221.0M non-GAAP net loss for the third quarter of 2017, or $0.22 diluted loss per share.

Revenue in the third quarter of 2018 was $1.440B, a modest decrease from the $1.450B of revenue recognized in the prior quarter and an about 1% decrease from the $1.460B of revenue stated for the third quarter of 2017. Sequentially, seasonal improvements in Canada and activity increases in Continental Europe and Asia were offset by lower overall activity levels in the United States and unfavorable foreign exchange rate movements in Latin America.

Operating loss for the third quarter of 2018 was $13.0M. Segment operating income in the third quarter of 2018 was $116.0M, up $47.0M, or 68%, sequentially and up $123.0M year-over-year.

In the third quarter of 2018, incremental recurring benefits as a result of the transformation plan were $27.0M. The total recurring transformation benefits recognized during the third quarter were $75.0M, or about $300.0M on an annualized basis, which represents about 30% of the $1.0B target.

Cash Flow

Net cash used by operating activities was $32.0M for the third quarter of 2018, driven by cash payments of $156.0M for debt interest and $20.0M for cash severance, restructuring, and transformation offset by segment operating income. Third quarter total capital expenditures of $55.0M, counting investments in held-for-sale land drilling rigs, increased by $7.0M, or 15%, sequentially and reduced $10.0M, or 15%, from the same quarter in the prior year.

The Company offered net profit margin of -45.60% while its gross profit margin was 19.20%. ROE was recorded as 236.30% while beta factor was 2.89. The stock, as of recent close, has shown the weekly downbeat performance of -30.97% which was maintained at -81.29% in this year.

Grover Beam

Grover Beam has over 14 years experience in the financial services industry giving him a vast understanding of how news affects the financial markets. He is an active day trader spending the majority of her time analyzing earnings reports and watching commodities and derivatives. He has a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

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