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Actionable news in WFT: WEATHERFORD INTERNATIONAL PLC,

Weatherford: Halliburton's 'TWA Treatment' Will Magnify Q3 Losses

Weatherford reports Q3 earnings on Wednesday.

Analysts expect revenue to decline 3% sequentially. Based on 7% declines for Halliburton and Schlumberger in Q3, this could be optimistic.

Halliburton has been offering price concessions in the oil patch that highly indebted Weatherford may be unable to match.

Halliburton reported a $49 million operating loss in North America which probably means Weatherford is hemorrhaging. Avoid WFT.

Weatherford employees. Source: weatherford.ru

Weatherford (NYSE:WFT) reports Q3 earnings on Wednesday. Analysts expect revenue of $2.32 billion and EPS of -0.11. The revenue estimate is 3% off the $2.39 billion in revenue the company reported last quarter. Investors should focus on the following key areas:

Weatherford Will Likely Miss Q3 Revenue Bogey

A 3% sequential decline in revenue is rather optimistic in my opinion. First of all, Q2 revenue was down Q/Q by 14%:

Source: Shock Exchange

The biggest decliner was North America, which experienced a drop in revenue of 31%. MENA/Asia Pacific was the only region where revenue did not decline last quarter. Secondly, competitors Schlumberger (NYSE:SLB) and Halliburton (NYSE:a>


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