NASDAQ$WFRD

Weatherford International plc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Weatherford's financial performance declined sequentially and year-over-year, but showed improvements in cost savings and liquidity.

Weatherford International plc reported revenues of $807 million for Q3 2020, a 2% sequential decrease and a 39% year-over-year decrease. The company's operating loss was $60 million, and the net loss was $174 million. However, the company achieved $107 million in unlevered free cash flow and total cash of $1.3 billion, enhanced by cost savings and financing transactions.

  • Revenues declined 2% sequentially, with North America growth of 2% offset by international declines of 3%.
  • Operating loss was $60 million, with adjusted EBITDA at $104 million.
  • Cash flows from operations reached $127 million, and unlevered free cash flow was $107 million.
  • Total cash was $1.3 billion as of September 30, 2020, following liquidity-enhancing transactions.

Headline financials

Total Revenue

$807M

Previous: $1.31B-38.6%
EPS (adj)

-$2.03

Previous: -$0.03-6666.7%
Adjusted EBITDA Margin

13.0%

Previous: 23.0%-43.5%
Capital Expenditures

-$100M

Previous: -$177M+43.5%
Free Cash Flow

-$274M

Previous: -$998M+72.5%
Net Income

-$174M

Previous: -$821M+78.8%
Operating Income

-$60M

Previous: -$447M+86.6%
Gross Profit

$0.00

Previous: -$451M+100.0%
Cash & Equivalents

$1.12B

Previous: $676M+65.8%
Total Assets

$5.66B

Previous: $6.32B-10.4%
R&D Expense

$21M

Previous: $35M-40.0%

Revenue & EPS history

Weatherford · Revenue · Quarterly

$807M

Q3 2020-38.6%vs Q3 2019
Beat estimate in 0 of 1 quarters(0%)
ActualEstimate

Revenue by segment

Weatherford · $955M total across 3 segments · Q4 2019

  • Production and Intervention
    $380M
  • Well Construction and Completions
    $292M
  • Drilling and Evaluation
    $283M

Forward guidance

While the market outlook remains cautious, Weatherford is encouraged by the stabilization of activity in certain geographies and a gradual path to recovery in others.

Tailwinds

  • Activity stabilization in certain geographies.
  • Gradual path to recovery in others.
  • Extended runway for capitalizing on new opportunities.
  • Focus on leveraging sustainable competitive advantages.
  • Refining company strategy

Headwinds

  • Cautious market outlook.
  • Impact of activity reductions.
  • Need for further cost and efficiency improvements.
  • Reliance on cost savings plan.
  • COVID-19 pandemic

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports

Historical avg

+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

Earnings price reactions
QuarterReport dateReaction (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
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Q4 2014
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Q4 2012
Q4 2013
Q2 2013
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
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Q4 2010
Q3 2010
Q2 2010
Q1 2010

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