Yahoo Finance The Weatherford International plc (NASDAQ:WFRD) First-Quarter Results Are Out And Analysts Have Published New Forecasts
Weatherford International plc (NASDAQ:WFRD) just released its latest first-quarter results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.6% to hit US$1.4b. Statutory earnings per share (EPS) came in at US$1.50, some 2.3% above whatthe analysts had expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Weatherford International after the latest results.
Check out our latest analysis for Weatherford International
Following the latest results, Weatherford International's nine analysts are now forecasting revenues of US$5.75b in 2024. This would be a notable 8.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 17% to US$7.33. In the lead-up to this report, the analysts had been modelling revenues of US$5.73b and earnings per share (EPS) of US$7.02 in 2024. So the consensus seems to have become somewhat more optimistic on Weatherford International's earnings potential following these results.
The consensus price target was unchanged at US$140, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Weatherford International at US$184 per share, while the most bearish prices it at US$85.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Weatherford International's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Weatherford International is forecast to grow faster in the future than it has in the past, with revenues expected to display 11% annualised growth until the end of 2024. If achieved, this would be a much better result than the 1.9% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.8% annually. Not only are Weatherford International's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Weatherford International following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Weatherford International going out to 2026, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for Weatherford International you should know about.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
