Weatherford International ( NASDAQ: WFRD ) stock rose ~9% on Wednesday after Q3 revenue beat analysts estimates.
Non-GAAP EPS grew to $0.40, compared to a loss of -$0.63 in Q3 2021, but missed estimates.
Total revenues grew +18.5% Y/Y to 1.12B.
Revenue from the Drilling & Evaluation segment rose +25% Y/Y (10% Q/Q) to $348M. The company said the growth was due to higher demand for all DRE product lines, mainly driven by managed pressure drilling and drilling services in the Middle East/North Africa/Asia and North America regions.
Well Construction and Completions revenue increased +13% Y/Y (+2% Q/Q) to $391M.
Total Adjusted EBITDA increased +19.5% Y/Y to $214M.
"In the third quarter, we continued to outperform on our two key metrics of margin expansion and free cash flow generation," said President and CEO Girish Saligram.
The company noted that cash flows provided by operations were $160M, compared to $114M Q3 2021. Meanwhile, Capital expenditures were $39M, compared to $20M in Q3 2021.
Free cash flow was $133M, an increase of $74M Q/Q and $22M Y/Y.
As of Sept. 30, the company had total cash of ~$1.1B.
Outlook : "As we look forward, we now expect full-year 2022 revenue to grow by high-teens year-over-year and for EBITDA margins to expand by over 200 basis points year-over-year, driven by solid execution, increased market activity, and dedicated customer focus. The overall macro-environment for the sector continues to be supported by strong fundamentals, despite inflationary and geopolitical headwinds," Saligram added.
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Weatherford stock gets a boost as Q3 revenue grows ~19%