NASDAQ$WFRD
Weatherford International plc · Q4 2019 earnings
Q4 2019 earnings · · Investor relations
Briefing
Weatherford announced Q4 2019 results, emerging from Chapter 11 bankruptcy protection and eliminating $6.2 billion of debt through financial restructuring.
Weatherford's Q4 2019 results were impacted by industry challenges, including activity reductions in North America and the economic crisis in Argentina. The company's combined revenues for the quarter were $1.2 billion. Despite these challenges, the company is focused on improving its business and sees meaningful opportunities for long-term growth.
- Weatherford emerged from Chapter 11 bankruptcy protection and eliminated $6.2 billion in debt.
- Q4 revenues were $1.2 billion, a 5% sequential decline.
- International revenues accounted for approximately 70% of total combined revenues.
- Adjusted EBITDA margins expanded by 350 basis points sequentially during the second half of the year.
Headline financials
Revenue & EPS history
Weatherford · Revenue · Quarterly
$985M
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
Despite a challenging outlook, Weatherford is committed to improving its profitability and free cash flow in 2020 by embedding a returns-focused mindset into the organization, continuing cost-reduction efforts, and eliminating non-recurring financial restructuring costs.
Tailwinds
- Embedding a returns-focused mindset into the organization
- Continued cost-reduction efforts
- Non-recurrence of costs associated with our financial restructuring
- Contract with ADNOC to deliver directional drilling services
- Contract extension to provide integrated services for shallow-water operations in Mexico
Headwinds
- Significant uncertainty on the industry’s trajectory for 2020
- Global impacts surrounding the COVID-19 pandemic, including operational and manufacturing disruptions, logistical constraints, and travel restrictions, are rapidly evolving and increasingly dynamic.
- Recent actions by certain members of OPEC and its partners have also disrupted the supply/demand equation, resulting in commodity price weakness and reductions to the capital spending plans of our customers.
- Implementing more aggressive actions to right-size our business, including further structural reductions in North America, adjustments to our manufacturing capacity, exiting unprofitable geographies, and lowering global support costs.
- Economic crisis in Argentina
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% | — | — | |
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