Weatherford (WFRD) came out with quarterly earnings of $1.03 per share, beating the Zacks Consensus Estimate of $0.89 per share. This compares to earnings of $1.50 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 15.73%. A quarter ago, it was expected that this oilfield service company would post earnings of $1.34 per share when it actually produced earnings of $1.50, delivering a surprise of 11.94%.Over the last four quarters, ...

Core Viewpoint - Weatherford International plc has appointed Anuj Dhruv as Executive Vice President and Chief Financial Officer, aiming to enhance leadership and drive shareholder returns [1][2]. Group 1: Leadership Changes - Anuj Dhruv brings over two decades of experience in global finance, strategy, and transformation across various industries, including technology, energy, and chemicals [3]. - Girish Saligram, President and CEO of Weatherford, expressed confidence that Dhruv's expertise will help position the company for future growth [2]. Group 2: Anuj Dhruv's Background - Prior to joining Weatherford, Dhruv served as Vice President of Finance and Strategy for LyondellBasell's Global Olefins and Polyolefins segment, overseeing a $29 billion revenue segment [3]. - Dhruv has held strategic leadership roles at Schlumberger and Microsoft, focusing on optimizing financial performance and leading complex M&A transactions [3]. Group 3: Company Overview - Weatherford provides innovative energy services that combine proven technologies with advanced digitalization to maximize value and return on investment [4]. - The company operates in approximately 75 countries with around 18,000 team members from over 110 nationalities [4].

Financial Performance - First quarter 2025 revenue was $1,193 million, a decrease of 12% year-over-year and 11% sequentially[2]. - First quarter operating income was $142 million, down 39% year-over-year, and net income was $76 million with a 6.4% margin, a decrease of 32% year-over-year[2][4]. - Adjusted EBITDA for the first quarter was $253 million, a 21.2% margin, reflecting a 25% decrease year-over-year[2][4]. - Total revenues for the first quarter 2025 were $1,193 million, down from $1,341 million in the previous quarter and $1,358 million in the same quarter last year[35]. - Net income for the first quarter 2025 was $86 million, compared to $124 million in the previous quarter and $123 million in the same quarter last year[40]. - Basic income per share for the first quarter 2025 was $1.04, down from $1.54 in the previous quarter and the same quarter last year[35]. - Adjusted EBITDA for the DRE segment was $74 million, down from $96 million in the previous quarter and $130 million year-over-year[35]. - Adjusted free cash flow for Q1 2025 was $66 million, a decrease from $162 million in Q4 2024 and an increase from $82 million in Q1 2024[49]. Cash Flow and Debt - Cash provided by operating activities was $142 million, and adjusted free cash flow was $66 million, down $16 million year-over-year[5]. - Cash flows from operating activities for the first quarter 2025 were $142 million, compared to $249 million in the previous quarter[40]. - Net cash provided by operating activities for Q1 2025 was $142 million, down from $249 million in Q4 2024 but up from $131 million in Q1 2024[49]. - Long-term debt as of March 31, 2025, was $1,583 million, a slight decrease from $1,617 million at the end of the previous year[38]. - Total debt as of March 31, 2025, was $1,605 million, a slight decrease from $1,634 million in Q4 2024 and a decrease from $1,730 million in Q1 2024[51]. - Net debt as of March 31, 2025, was $675 million, an increase from $659 million in Q4 2024 and a decrease from $793 million in Q1 2024[51]. - Net leverage ratio for the trailing 12 months was 0.52x as of March 31, 2025, compared to 0.48x in Q4 2024 and 0.63x in Q1 2024[51]. Shareholder Returns and Equity - The company repurchased $34 million of Senior Notes and returned $71 million to shareholders, including $18 million in dividends and $53 million in share repurchases[2][13]. - Total shareholders' equity increased to $1,360 million as of March 31, 2025, up from $1,283 million at the end of the previous year[38]. Business Operations and Strategy - The sale of the Pressure Pumping business in Argentina was completed as part of the portfolio optimization strategy[2][8]. - The company signed a strategic agreement with AIQ to enhance energy production efficiency using advanced automation and AI technology[2]. - The company expects to scale back activity level expectations for the remainder of the year while focusing on increasing adjusted free cash flow conversion[7]. - The company plans to continue focusing on strategic solutions that enhance efficiency and flexibility in energy operations[26]. - Weatherford operates in approximately 75 countries with around 18,000 team members, indicating a strong global presence[26]. Regional Performance - North America revenue decreased by 6% year-over-year to $250 million, primarily due to lower activity in DRE and WCC segments[22]. - International revenue was $943 million, a decrease of 14% year-over-year, with Latin America revenue down 35% to $241 million[23]. - First quarter 2025 revenue for Europe/Sub-Sahara Africa/Russia was $199 million, a decrease of $25 million or 11% year-over-year, primarily due to lower activity across all segments[25]. - Revenues for Q1 2025 were $1,193 million, a decrease of 11% from $1,341 million in Q4 2024 and a decrease of 12% from $1,358 million in Q1 2024[49].

Core Insights - Weatherford International plc reported a revenue of $1,193 million for Q1 2025, reflecting a 12% decrease year-over-year and an 11% decrease sequentially [2][6] - The company experienced a significant decline in operating income, which was $142 million, down 39% from $233 million in Q1 2024 [2][6] - Net income for Q1 2025 was $76 million, representing a 32% decrease year-over-year, with a net income margin of 6.4% [2][6] - Adjusted EBITDA was reported at $253 million, a decrease of 25% year-over-year, with an adjusted EBITDA margin of 21.2% [2][6] - The company faced market softening in key regions, particularly in Mexico, the UK, and North America, impacting activity levels [4][5] Financial Performance - Q1 2025 cash flows from operating activities were $142 million, an increase from $131 million in Q1 2024 but down from $249 million in Q4 2024 [3][6] - Adjusted free cash flow for Q1 2025 was $66 million, a decrease of $16 million year-over-year and $96 million sequentially [3][6] - Capital expenditures in Q1 2025 were $77 million, compared to $59 million in Q1 2024 and $100 million in Q4 2024 [3][6] Shareholder Returns - The company returned $71 million to shareholders in Q1 2025, which included $18 million in dividends and $53 million in share repurchases [11][6] - A quarterly cash dividend of $0.25 per share was declared, payable on June 5, 2025, to shareholders of record as of May 6, 2025 [11][6] Operational Highlights - Weatherford secured several significant contracts, including an eight-year contract extension with an International Oil Company in Kazakhstan and a five-year Integrated Completions contract with PDO Oman [9][6] - The company completed the sale of its Pressure Pumping business in Argentina as part of its portfolio optimization strategy [6][6] Revenue by Geography - North America revenue for Q1 2025 was $250 million, down 6% year-over-year, primarily due to lower activity in DRE and WCC segments [20][21] - International revenue was $943 million, a decrease of 14% year-over-year, with Latin America revenue down 35% year-over-year to $241 million [21][22] - Middle East/North Africa/Asia revenue increased by 1% year-over-year to $503 million, while Europe/Sub-Sahara Africa/Russia revenue decreased by 11% year-over-year to $199 million [22][23]

Core Insights - Weatherford International plc has signed a strategic Memorandum of Understanding (MOU) with AIQ to enhance efficiency in energy production through advanced automation and AI technology [1][2] Group 1: Partnership Objectives - The collaboration aims to integrate Weatherford's software and hardware solutions with AIQ's AI-driven systems to optimize production workflows and enhance operational efficiency in global oil and gas facilities [2][5] - This partnership is expected to unlock unprecedented efficiencies, boost productivity, and reduce operational costs in the energy sector [5] Group 2: Key Technologies Involved - The integration will feature Weatherford's Modern Edge suite, which will allow operators to scale work processes efficiently while ensuring economic returns [7] - The Unified Data Model will harmonize multi-asset data, combining operational and financial analysis into a unified, API-supported data model for smarter decision-making [7] - The WFRD Software Launchpad will provide a comprehensive industrial SaaS platform for customers to manage their software needs, simplifying vendor management and ensuring data security [7] Group 3: Leadership Perspectives - The President and CEO of Weatherford expressed excitement about the partnership, emphasizing the delivery of innovative, AI-driven solutions to maximize operational efficiency and reduce costs [3] - The Acting Managing Director of AIQ highlighted the partnership's role in accelerating the deployment of impactful AI systems across the energy value chain [3]

Group 1 - Weatherford International (NASDAQ: WFRD) has significantly improved since emerging from bankruptcy at the end of 2019 and is well-positioned to handle a potential economic slowdown [1] - The company's balance sheet is solid, indicating financial stability [1] Group 2 - Sunshine Kapital, led by Stefan, focuses on distressed situations and value opportunities, bringing twenty years of institutional experience in Research and Portfolio Management [1]

Core Viewpoint - Weatherford (WFRD) is positioned to potentially continue its earnings-beat streak in the upcoming report, having surpassed earnings estimates consistently in recent quarters [1][5]. Earnings Performance - In the last reported quarter, Weatherford achieved earnings of $1.50 per share, exceeding the Zacks Consensus Estimate of $1.34 per share by 11.94% [2]. - In the previous quarter, the company reported earnings of $2.06 per share against an expected $1.65 per share, resulting in a surprise of 24.85% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Weatherford, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for Weatherford is +1.50%, suggesting analysts are optimistic about its near-term earnings potential [8]. Zacks Rank and Success Rate - Weatherford holds a Zacks Rank of 3 (Hold), which, when combined with a positive Earnings ESP, indicates a high probability of beating consensus estimates, with a success rate of nearly 70% for stocks with this combination [6][8].

Core Viewpoint - The market anticipates Weatherford (WFRD) will report a year-over-year decline in earnings due to lower revenues, with a consensus EPS estimate of $0.89, reflecting a -40.7% change, and revenues expected at $1.23 billion, down 9.6% from the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for April 22, and stock movement may depend on whether actual results exceed or fall short of expectations [2]. - A positive earnings surprise could lead to a stock price increase, while a miss may result in a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 4.42% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Weatherford is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.50%, suggesting a bullish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Weatherford currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Weatherford exceeded the expected EPS of $1.34 by delivering $1.50, resulting in a surprise of +11.94% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - Weatherford is positioned as a compelling candidate for an earnings beat, but investors should consider other factors that may influence stock performance beyond just earnings results [16].

Core Insights - Weatherford International plc released its 2024 Annual Update, highlighting financial results, technology innovations, and strategic focus areas aimed at creating long-term value for stakeholders [1][2] - The company achieved significant operational milestones in 2024, setting new records and reinforcing its position as an industry leader through strategic acquisitions and a commitment to innovation, safety, and quality [2] Company Overview - Weatherford provides innovative energy services that combine proven technologies with advanced digitalization to maximize value and return on investment [3] - The company operates in approximately 75 countries, employing around 19,000 team members from over 110 nationalities across 330 operating locations [3]

Core Viewpoint - Weatherford International plc will host a conference call on April 23, 2025, to discuss its first-quarter results for the period ending March 31, 2025 [1]. Group 1: Conference Call Details - The conference call is scheduled to begin at 8:30 a.m. Eastern Time (7:30 a.m. Central Time) [2]. - Participants can join the call via a live webcast or by dialing specific numbers for U.S. and international access [3]. - A telephonic replay of the conference call will be available until May 7, 2025, at 5:00 p.m. Eastern Time [4]. Group 2: Company Overview - Weatherford provides innovative energy services that combine proven technologies with advanced digitalization to enhance value and return on investment [5]. - The company operates in approximately 75 countries, employing around 19,000 team members from over 110 nationalities across 330 locations [5].