WFT’s 2Q16 earnings estimates
In 2Q16, analysts expect adjusted earnings per share (or EPS) of -$0.29 for Weatherford International (WFT). This means that Wall Street analysts expect WFT’s adjusted earnings to change only marginally in the coming quarter compared to its 1Q16 adjusted earnings of -$0.29 per share.
Persistent pricing pressure, capital expenditure reductions by US upstream companies, and project cancellations could lower WFT’s 2Q16 earnings. WFT is expected to hold its 2Q16 earnings conference call on July 28, 2016.
Weatherford International posted steady earnings growth from 4Q13 to 4Q14. During this period, its adjusted EPS rose by 3.5x. However, its falling rig count sent its 1Q15 adjusted earnings crashing to a $0.04 per share loss. From 1Q15 to 1Q16, its EPS fell further.
Weatherford International’s earnings versus estimates
In 1Q16, Weatherford International’s adjusted EPS fell short of analysts’ consensus estimates. As noted in the graph above, Weatherford International’s adjusted EPS have exceeded estimates in many quarters in the past. On average, its adjusted EPS have exceeded consensus EPS estimates by ~13% over the past 12 quarters.
Oceaneering International’s (OII) 2Q16 estimated earnings are expected to fall marginally compared to its 1Q16 adjusted earnings. OII provides engineered services and products to the offshore upstream energy industry.
Weatherford International provides equipment and services used in the drilling, evaluation, completion, production, and intervention of energy production. WFT makes up 0.02% of the iShares MSCI World ETF (URTH). The energy sector makes up 6.8% of URTH.
Next, we’ll discuss how the rig count affects Weatherford International’s performance.