Analyst Note| Preston Caldwell |
Weatherford reported first-quarter revenue down 1% sequentially, with a 6% decrease in the Eastern Hemisphere offset by a 5% increase in the Western Hemisphere. The decline in the Eastern Hemisphere was in line with the usual seasonal patterns, while Western Hemisphere results were uplifted especially by increases in U.S. shale activity. Adjusted operating margins were flat at about negative 2%. Our fair value estimate and no-moat rating are unchanged following the results.