Thursday, March 17, 2011

Wells (WFC) Cuts Weatherford (WFT) Earnings Outlook

Troubled Weatherford (NYSE:WFT) has had its full-year earnings estimated lowered by Wells Fargo (NYSE:WFC), primarily on the effects arising from the devastating floods in Australia.

They lowered their outlook from $1.08 a share to 97 cents a share.

Other factors which have also resulted in Weatherford itself lowering their first-quarter outlook was ongoing unrest in the Middle East and tax rates which were higher than expected.

Weatherford lowered its earnings outlook in the first quarter from 27 cents a share to 18 cents a share.

Also communicated by the company in a filing was that Principal Accounting Officer Charles E. Geer has resigned from the company after the discovery of tax-accounting errors which has force Weatherford to revise prior results by approximately $500 million over the last four years.

The announcement, according to Wells Fargo Securities analyst Matt Conlan, probably means there will be no other resignations or firings related to the accounting fiasco.

Weatherford closed Wednesday at $19.88, falling $0.57, or 2.79 percent.

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