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

Total Revenue

$985M

Previous: $1.43B-31.1%
EPS (adj)

$75.41

Previous: -$0.14+53964.3%
Adjusted EBITDA

$151M

No prior period
Adjusted EBITDA Margin

12.0%

No prior period
Net Debt

$1.4B

No prior period
Net Income

$5.26B

Previous: -$2.1B+350.3%
Operating Income

-$315M

Previous: -$1.96B+83.9%
Gross Profit

$240M

Previous: $308M-22.1%
R&D Expense

$29M

Previous: $33M-12.1%

Revenue & EPS history

Weatherford · Revenue · Quarterly

$985M

Q4 2019-31.1%vs Q4 2018

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

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

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
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

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