Weatherford Earnings: International Exposure and Cost Reduction Support Profitable Growth

Weatherford International reported solid 2024 first-quarter results, with total revenue growing 15% year on year to $1.36 billion, in line with management’s guidance of double-digit growth. The firm’s international presence, which makes up around 80% of total revenue, proved favorable, offsetting recent demand softness in North America. Profitability also continued its steady expansion, with adjusted EBITDA expanding by 110 basis points sequentially to 24.7%, well exceeding the forecast increase of 25-50 basis points. Management indicated the firm will aim to hit its goal of 25% by year-end 2024. We maintain our $85 fair value estimate and still view shares as overvalued. We maintain our no-moat rating and Very High Morningstar Uncertainty Rating.