Weatherford (WFT) Tops Q3 EPS by 3c, Revenues Miss

Weatherford (NYSE: WFT) reported Q3 EPS of ($0.10), $0.03 better than the analyst estimate of ($0.13). Revenue for the quarter came in at $1.44 billion versus the consensus estimate of $1.52 billion.

• Increased segment operating income by 68% sequentially and by $123 million on a year-over-year basis.
• Reached an agreement with lenders to extend the revolving credit facility.
• Achieved annualized recurring transformation benefits of $300 million, which represents 30% of the total transformation target.
• Signed a definitive agreement to divest the laboratory services business for $205 million in cash.
• Continued to exceed goals for reducing nonproductive time on a year-to-date basis, extending the improvements achieved over the past four years.
• Extended ForeSite® and CygNet® SCADA production software availability on the Google Cloud platform.

Mark A. McCollum, President and Chief Executive Officer, commented, "I am pleased with our third quarter operating results, which once again demonstrate the strength of our transformation and its positive impact on our bottom line. With a $195 million, or 56%, increase in adjusted EBITDA year-to-date compared to this time last year, these results represent a significant achievement and reaffirm the effectiveness of our transformation plan. Our progress reflects the discipline and accountability now being ingrained in our organization. I am confident that, having achieved approximately 30% of our annualized transformation goal, we will reach our $1 billion run-rate improvement target by the end of 2019. I believe we are just starting to see what this company is capable of."

"During the quarter, we fell short of our revenue and cash flow goals, due in large part to transitory supply chain and manufacturing inefficiencies as well as continued challenges converting inventories to cash. We remain intensely focused on generating free cash flow and on reversing these trends."

"The recent announcement of the sale of our laboratory services business earlier this month, combined with the previously announced land drilling rigs divestiture, will generate close to $500 million in cash proceeds, which will be used to reduce debt."

For earnings history and earnings-related data on Weatherford (WFT) click here.

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