Will Weatherford Ever Steer Operations Straight?
Only last week, Schlumberger (NYSE: SLB ) produced solid results based on a strong operating environment in the international segments. Those results would generally present a positive background for other international focused oil-service stocks such as Weatherford International (NYSE: WFT ) . Unfortunately, though, Weatherford did its typical pre-announcement of bad results regardless of the operating environment.
Weatherford spent the last couple of years dealing with accounting and tax issues that were about to become part of its past. After reporting solid third-quarter results, investors had expected the smallest of the oil-service majors to finally produce solid results for investors. Instead, the company came out with preliminary earnings in a range of $0.05 to $0.08, partially hit by an effective tax rate of 50%. Analysts had expected earnings to grow sequentially from $0.23 reported in the third quarter.
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