NASDAQ$WFRD

Weatherford International plc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Weatherford's Q4 2022 results showcased significant growth and profitability improvements.

Weatherford announced strong Q4 2022 results with revenues of $1,209 million, a 25% increase year-over-year, and operating income of $169 million, a 412% increase year-over-year. The company's net income was $72 million, a substantial improvement from the previous year's net loss. Adjusted EBITDA was $266 million, representing a 22.0% margin, and free cash flow was $171 million.

  • Revenues increased by 25% year-over-year, reaching $1,209 million.
  • Operating income surged by 412% year-over-year to $169 million.
  • Net income improved to $72 million, compared to a net loss in the previous year.
  • Free cash flow reached $171 million, demonstrating strong financial health.

Headline financials

Total Revenue

$1.21B

Previous: $965M+25.3%
EPS (adj)

$1.12

Previous: -$0.63+277.8%
Adjusted EBITDA Margin

22.0%

No prior period
Capital Expenditures

$49M

Previous: $41M+19.5%
Free Cash Flow

$171M

Previous: $49M+249.0%
Net Income

$72M

Previous: -$157M+145.9%
Operating Income

$169M

Previous: $33M+412.1%
Gross Profit

$402M

Previous: $248M+62.1%
Cash & Equivalents

$910M

Previous: $951M-4.3%
Total Assets

$3.3B

Previous: $0.00

Revenue & EPS history

Weatherford · Revenue · Quarterly

$1.21B

Q4 2022+25.3%vs Q4 2021
Beat estimate in 9 of 14 quarters(64%)
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 anticipates full year 2023 revenue to grow by low double digits to mid-teens year-over-year and for EBITDA margins to expand at least 100 basis points year-over-year.

Tailwinds

  • Full year 2023 revenue is expected to grow by low double digits to mid-teens year-over-year.
  • EBITDA margins are projected to expand at least 100 basis points year-over-year.
  • The company is shifting from a turnaround phase to a value creating engine.
  • Focus remains on margins, cash flow, and positioning the company for long-term success.
  • New contracts, technology advancements, and partnerships are expected to impact future performance.

Headwinds

  • The sector faces continued inflationary and geopolitical headwinds.
  • There are still opportunities to drive additional efficiencies in structure and processes.
  • The company's performance is subject to global political, economic, and market conditions.
  • The company's performance is subject to the price and demand for oil and natural gas.
  • The company's performance is subject to cybersecurity issues and climate change initiatives.

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 2022

Historical avgQ4 2022

+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
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Q1 2019
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Q4 2011
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Q4 2010
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