Weatherford Earnings: We Plan to Modestly Reduce Value Given the Soft 2025 Outlook

No-moat-rated Weatherford results trailed our fourth-quarter expectations and PitchBook revenue consensus, but its GAAP earnings per share of $1.50 beat the Street’s earnings expectations by $0.14. Still, our outlook for oilfield services companies is now more bearish given the weaker global macroeconomic environment, particularly as it affects oil demand from China. We’d also flag general concerns that the global market for oil remains oversupplied. So, we expect less producer spending overall, and therefore reduce our fair value estimate to $77 from $84.