imaginima
Shares of oil and gas driller Weatherford (NASDAQ:WFRD) rose 9.8% in Wednesday mid-day trading, after it beat Q3 revenue estimates, boosted by a $70M jump in its DRE segment.
On Thursday after the bell, WFRD reported Q3 revenue of $1.12B which beat estimates by $20M and Q3 Non-GAAP EPS of $0.40 missing by 2 cents.
Q3 drilling and evaluation segment benefitted from higher demand for all product lines, primarily driven by managed pressure drilling and drilling services in the Middle East/North Africa/Asia and North America regions.
Revenue breakdown: DRE $348M (+25% Y/Y), WCC $391M (+13 Y/Y), PRI $357M (+23% Y/Y)
Other Metrics: Q3 cash flows from ops $160M vs $114M, Adj EBITDA $214M (+20% Y/Y), FCF was $22M higher from a year ago at $133M.
CEO Girish Saligram, on the WFRD’s quarterly performance, said the company continued to outperform on margin expansion and FCF generation and demonstrated strong sequential revenue growth.
Looking forward, WFRD expects 2022 revenue to grow by high-teens Y/Y, EBITDA margins to expand by over 200 bps Y/Y.
“The overall macro-environment for the sector continues to be supported by strong fundamentals, despite inflationary and geopolitical headwinds.” – CEO
