NASDAQ$WFRD
Weatherford International plc · Q1 2020 earnings
Q1 2020 earnings · · Investor relations
Briefing
Weatherford's first quarter results were announced, revealing operating improvements amidst a challenging environment.
Weatherford International plc reported a GAAP revenue of $1.2 billion for Q1 2020, a 2% sequential decrease and a 10% year-on-year decrease. The company faced a net loss of $966 million, compared to a $5.3 billion net income in Q4 2019 and a $481 million net loss in Q1 2019. Despite these challenges, the adjusted EBITDA grew by 15% sequentially and 39% year-on-year, and the company was free cash flow neutral.
- Revenues of $1.2 billion declined 2% sequentially and 7% year-on-year (excluding divestitures).
- International revenues declined 1% sequentially and grew 2% year-on-year (excluding divestitures).
- North American revenues declined 4% sequentially and 23% year-on-year (excluding divestitures).
- Adjusted EBITDA of $178 million grew by 15% sequentially and 39% year-on-year, with associated margins of 15%.
Headline financials
Revenue & EPS history
Weatherford · Revenue · Quarterly
$1.22B
Revenue by segment
Weatherford · $955M total across 3 segments · Q4 2019
- Production and Intervention$380M—39.8%
- Well Construction and Completions$292M—30.6%
- Drilling and Evaluation$283M—29.6%
Forward guidance
Company expects a multi-year dislocation across the industry, with the quickest and deepest impacts in North America, followed by certain international markets such as Europe, Latin America and Sub Saharan Africa.
Tailwinds
- More than doubled the cost savings actions that were underway going into 2020.
- Implementing a combination of structural reductions.
- Implementing headcount and pay reductions.
- Implementing furloughs and facility closures.
- Implementing capital expenditure reductions.
Headwinds
- Significant acceleration of the disruptions associated with the COVID-19 pandemic.
- Global storage for crude oil will likely reach full capacity, further pressuring crude pricing.
- Forcing producers to shut-in a significant amount of production globally.
- Unclear when a stable oil market will return, as record crude inventories will likely dampen the pace of any recovery.
- Evaluating various alternatives to address the level of the Company’s debt service and expected reductions in borrowing capacity under the ABL Facility.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports
+2.5%
Avg return
Earnings day
+5.7%
Avg return
5 days after
+3.4%
Avg return
30 days after
69%
18 / 26 earnings
Positive
+16.0%
Q4 2022
Best reaction
-10.0%
Q4 2019
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +1.6% | +10.1% | +9.1% | |
| Q4 2025 | +4.1% | +8.6% | -5.4% | |
| Q3 2025 | +0.5% | +5.7% | +9.9% | |
| Q2 2025 | -2.1% | -0.2% | +10.3% | |
| Q1 2025 | -7.2% | -6.3% | +1.2% | |
| Q4 2024 | +0.2% | +3.1% | -14.0% | |
| Q3 2024 | -4.2% | -5.2% | +0.7% | |
| Q2 2024 | -8.1% | -11.2% | -21.2% | |
| Q1 2024 | +8.6% | +11.2% | -0.3% | |
| Q4 2023 | +10.7% | +13.9% | +29.0% | |
| Q3 2023 | +0.2% | +0.6% | -0.3% | |
| Q2 2023 | +5.0% | +7.9% | +9.1% | |
| Q1 2023 | -1.6% | +3.0% | -5.6% | |
| Q4 2022 | +16.0% | +20.3% | +13.0% | |
| Q3 2022 | +7.1% | +9.1% | +12.7% | |
| Q2 2022 | +15.0% | +23.0% | +46.0% | |
| Q1 2022 | +3.8% | -4.9% | +3.8% | |
| Q4 2021 | +1.5% | -0.7% | -8.4% | |
| Q3 2021 | -2.5% | +11.6% | -7.9% | |
| Q2 2021 | +9.2% | +4.4% | -3.1% | |
| Q1 2021 | +9.3% | +13.3% | -6.2% | |
| Q4 2020 | -4.7% | +7.1% | +2.2% | |
| Q3 2020 | +4.6% | — | — | |
| Q2 2020 | +3.0% | — | — | |
| Q1 2020 | +5.6% | — | — | |
| Q4 2019 | -10.0% | — | — | |
| Q3 2019 | — | — | — | |
| Q2 2019 | — | — | — | |
| Q1 2019 | — | — | — | |
| Q4 2018 | — | — | — | |
| Q3 2018 | — | — | — | |
| Q2 2018 | — | — | — | |
| Q1 2018 | — | — | — | |
| Q4 2017 | — | — | — | |
| Q3 2017 | — | — | — | |
| Q2 2017 | — | — | — | |
| Q1 2017 | — | — | — | |
| Q4 2016 | — | — | — | |
| Q3 2016 | — | — | — | |
| Q2 2016 | — | — | — | |
| Q1 2016 | — | — | — | |
| Q4 2015 | — | — | — | |
| Q3 2015 | — | — | — | |
| Q2 2015 | — | — | — | |
| Q1 2014 | — | — | — | |
| Q1 2015 | — | — | — | |
| Q1 2013 | — | — | — | |
| Q4 2014 | — | — | — | |
| Q3 2013 | — | — | — | |
| Q3 2014 | — | — | — | |
| Q2 2014 | — | — | — | |
| Q4 2012 | — | — | — | |
| Q4 2013 | — | — | — | |
| Q2 2013 | — | — | — | |
| Q3 2012 | — | — | — | |
| Q2 2012 | — | — | — | |
| Q1 2012 | — | — | — | |
| Q4 2011 | — | — | — | |
| Q3 2011 | — | — | — | |
| Q2 2011 | — | — | — | |
| Q1 2011 | — | — | — | |
| Q4 2010 | — | — | — | |
| Q3 2010 | — | — | — | |
| Q2 2010 | — | — | — | |
| Q1 2010 | — | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro