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Update: Weatherford Reports Solid Q4 Results Setting Up Potential Rebound

Despite the other oil service large caps generally reporting some blowout Q4 earnings, Weatherford International (WFT) squeaked by with a positive quarter. Of course, this assumes the market forgives the revenue miss that appears related to analysts not correctly accounting for asset sales, especially related to the Russian land drilling and pipeline assets sold during Q3. The stock is down roughly 55% from the highs back in July though the company is in a new era of generally more positive operational results.

For Q414, Weatherford produced sequentially flat earnings of $0.32 that beat analyst estimates by $0.01. Revenue missed the targets at $3.73 billion, but the numbers were impacted by asset sales and general corporate shift away from revenue not supported by strong margins. Operating margins dropped to 14.8% and failed to reach the original targets of closer to 20.0%. The major negative to the quarter was an 8% decline… Read More …