Weatherford International (NASDAQ: WFRD) announced its quarterly earnings on Tuesday, reporting earnings per share (EPS) of $1.91 for the period. This figure exceeded the consensus estimate of $1.50 by $0.41, showcasing the company’s stronger-than-expected financial performance. The company also generated revenue of $1.29 billion, surpassing analyst forecasts of $1.26 billion, according to FiscalAI.
The company achieved a net margin of 8.15% and a return on equity of 28.28%, indicating robust operational efficiency and profitability. Following the earnings announcement, Weatherford’s stock rose by $3.60 to reach $95.99, with a trading volume of 1,829,408 shares, significantly higher than its average volume of 1,301,778 shares.
Dividend Increase and Financial Ratios
Weatherford International also declared a quarterly dividend of $0.275, set to be paid on March 5, 2024. Shareholders of record on February 6, 2024 will be eligible for this payout, marking an increase from the previous dividend of $0.25. This adjustment translates to an annualized dividend of $1.10, yielding approximately 1.1%. The company’s dividend payout ratio stands at 18.12%, reflecting a sustainable dividend policy.
In terms of financial health, Weatherford reported a debt-to-equity ratio of 0.93, a current ratio of 2.07, and a quick ratio of 1.55. The company’s stock has shown significant volatility, with a 52-week low of $36.74 and a high of $96.16. Weatherford’s market capitalization is currently $6.89 billion, and it has a price-to-earnings (P/E) ratio of 17.39 and a beta of 0.79.
Investor Activity and Analyst Ratings
Institutional investors have been active in adjusting their stakes in Weatherford International. Notably, EverSource Wealth Advisors LLC increased its holdings by 83.5% in the second quarter, now owning 556 shares valued at $28,000. Smartleaf Asset Management LLC also raised its stake by 69.8%, while Johnson Financial Group Inc. acquired a new stake valued at $52,000 during the third quarter. Overall, institutional investors control 97.23% of the company’s stock.
Several analysts have recently issued ratings and price targets for Weatherford. Barclays lowered its target price from $111.00 to $109.00 while maintaining an “overweight” rating. Conversely, Zacks Research downgraded the stock from a “strong-buy” to a “hold” rating. Weiss Ratings reiterated a “hold (c)” rating, while BMO Capital Markets began coverage with an “outperform” rating and a price target of $82.00. The Goldman Sachs Group adjusted its target price from $66.00 to $73.00, assigning a “neutral” rating. Currently, seven analysts rate the stock as a Buy, and four recommend a Hold, leading to an average rating of “Moderate Buy” with a price target of $93.00.
Weatherford International is a global leader in oilfield services, focusing on the development, design, and manufacturing of technologies for oil and natural gas drilling. Its core services include well construction, completion solutions, and production enhancement, alongside a wide range of drilling optimization and reservoir evaluation products.
