Bear of the Day: Weatherford Int'l

Zacks

We are maintaining our recommendation on Weatherford International (WFT) at Underperform. Operating results in the third quarter were challenging, and several one-time or transitory issues impacted the results.

The company expects its poor-margin Iraqi contract to hurt operations and shrink the average output in 2012. It has not resolved its material weakness related to income taxes and found errors related to its percentage of completion accounting in Iraq. Third quarter international results were weak across the board with lower-than-expected revenues and margins.

Low gas prices also remain a concern. Given these headwinds, we expect shares of Weatherford to be under pressure in the near future.

WEATHERFORD INT (WFT): Free Stock Analysis Report

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