NASDAQ$WFRD

Weatherford International plc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Announced Q4 and full-year 2020 results, showing sequential revenue growth and improved free cash flow.

Weatherford International plc reported Q4 2020 revenues of $842 million, a 4% sequential increase. The company's operating loss was $107 million, with an adjusted EBITDA of $98 million. Cash flow from operating activities was $22 million, and unlevered free cash flow was $95 million. The company ended the year with $1.3 billion in total cash.

  • Q4 2020 revenues increased by 4% sequentially, driven by growth in North America and internationally.
  • The company achieved another quarter of double-digit adjusted EBITDA margins.
  • Full-year 2020 adjusted EBITDA decrementals were limited to 9% year-on-year.
  • Weatherford generated $78 million of positive free cash flow in 2020, an improvement of $950 million year-on-year.

Headline financials

Total Revenue

$3.69B

Previous: $985M+274.1%
EPS (adj)

-$27.44

Previous: $75.41-136.4%
Capital Expenditures

$54M

No prior period
Free Cash Flow

-$23M

No prior period
Net Income

-$195M

Previous: $5.26B-103.7%
Operating Income

-$107M

Previous: -$315M+66.0%
Gross Profit

$322M

Previous: $240M+34.2%
Cash & Equivalents

$1.12B

No prior period
Total Assets

$4.73B

No prior period

Revenue & EPS history

Weatherford · Revenue · Quarterly

$3.69B

Q4 2020+274.1%vs Q4 2019
Beat estimate in 1 of 2 quarters(50%)
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

Weatherford has built its 2021 cost plan assuming activity levels remain flat versus 2020 exit levels and identified several focus areas to continue driving improvements.

Tailwinds

  • Continue to improve our profitability in North America
  • Simplify our organization
  • Implementing initiatives to improve the variable cost profile of our operations
  • Capitalize on our margin improvements
  • Remain disciplined when evaluating and allocating capital expenditures

Headwinds

  • Continued uncertainty around the timing and magnitude of a recovery
  • Due to the COVID-19 pandemic and its impact on economic activity
  • Assuming activity levels remain flat versus 2020 exit levels
  • Implement new processes to catalyze further working capital efficiencies.
  • Achievement of these focus areas is not predicated on a recovery in market activity

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+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

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