Oilfield services provider Weatherford International beats Q2 revenue expectations

Overview

• Weatherford International Q2 revenue of $1.204 bln beats analyst expectations, per LSEG data

• Operating income rises 67% sequentially, net income up 79% sequentially

• Adjusted EBITDA flat sequentially but beats analyst estimates, per LSEG data

Outlook

• Weatherford anticipates flat revenue trajectory for immediate future amid sluggish market activity

• oilfield services provider sees delayed broader sector recovery expectations

• Weatherford focuses on driving free cash flow through cost efficiencies

• Company cites geopolitical events and trade uncertainties as market challenges

Result Drivers

• OPERATIONAL EFFICIENCY - CEO attributes strong sequential performance to disciplined execution and operational efficiency despite market challenges

• DIGITAL PARTNERSHIP - Agreement with Amazon Web Services to modernize digital platforms aims to enhance operational efficiency

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy"

• Wall Street's median 12-month price target for Weatherford International PLC is $69.00, about 22.5% above its July 21 closing price of $53.45

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX8JJnZz