WFRD - Weatherford rallies after strong Q1 earnings beat upbeat guidance

2023-04-26 14:32:03 ET

Weatherford International ( NASDAQ: WFRD ) +6% in Wednesday's trading after Q1 GAAP earnings easily topped expectations and revenues rose 26% Y/Y to $1.18B, generating margins ahead of the company's record Q4 2022.

Q1 net income swung to a $72M profit, or $0.97/share, from a net loss of $80M, or $1.14/share, in the year-earlier quarter, while total sales jumped to $1.19B from $938M.

Q1 revenues by segment: Well Construction & Completions up 22% Y/Y to $421M, Drilling & Evaluation up 27% to $372M, Production & Intervention up 22% to $349M.

Q1 segment adjusted EBITDA margin surged Y/Y across the board: Well Construction & Completions to 22.8% from 19.5%, Drilling & Evaluation to 29% from 20.2%, Production & Intervention to 19.5% from 13.6%.

"This very encouraging start to the year gives us confidence to continue to reduce debt, improve our outlook, and raise our guidance for the full year," Weatherford ( WFRD ) said, now seeing revenues rising by mid-teens Y/Y and adjusted EBITDA margins expanding by at least 250 bps Y/Y, which will result in higher adjusted free cash flow generation than 2022.

More on Weatherford International:

• See financial and valuation comparisons to sector peers
• SA analysis: Weatherford Set to Benefit from E&P Capex Upcycle After Weathering the Storm
• Stock price return: 30% gain YTD, 87% gain in the past 12 months

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