Weatherford International's Q1 2024 Earnings Beat Estimates, Analysts Bullish on Stock

Barclays's David Anderson raised their price target on Weatherford International (NASDAQ: WFRD) by 18.5% from $135 to $160 on 2024/04/26. The analyst maintained their Strong Buy rating on the stock.

According to the analyst, Weatherford International continues to impress with strong numbers in the first quarter of 2024. The company reported earnings per share (EPS) of $1.50, beating the Zacks Consensus Estimate of $1.41 and showing a significant increase of 54.6% compared to the same quarter in 2023. Additionally, the company's revenue of $1.36 billion exceeded expectations by 2.44% and grew by 14.3% compared to Q1 2023.

Weatherford International also reported adjusted EBITDA of $336 million, representing a 25% year-over-year increase, and an adjusted EBITDA margin of 24.7%, up 206 basis points from the previous year. The company's free cash flow for the quarter was $82 million.

Looking ahead, Weatherford International's management provided guidance for the second quarter and full year of 2024. For Q2 2024, the company expects a 4% to 6% increase in revenue, a 20 to 30 basis point improvement in adjusted EBITDA margin, and capital expenditures (capex) ranging from $65 million to $80 million. The company projects its free cash flow to be in line with the previous quarter.

For the full year 2024, Weatherford International anticipates double-digit to low-teens year-over-year revenue growth, an adjusted EBITDA margin of 25%, capex amounting to 5% of revenue, and free cash flow exceeding $500 million. President & CEO Girish Saligram expressed confidence in the company's performance, stating, "FY adjusted EBITDA margin is now expected to hit 25% in 2024 instead of in 2025."

The analyst rating for Weatherford International is overwhelmingly positive, with 100% of top-rated analysts currently rating the stock as a Strong Buy or Buy. No analysts see it as a Hold, and there are no recommendations to sell the stock.

The consensus forecast among analysts is that Weatherford International's upcoming year will deliver earnings per share (EPS) of $1.95. If the analysts' predictions hold true, the company's next yearly EPS will be down by 69.1% compared to the previous year.

Since the release of Weatherford International's Q1 2024 earnings report on April 23, the stock price has increased by 8.4%. Year-over-year, the stock has seen an impressive growth of 107.2%. During this period, Weatherford International has outpaced the S&P 500, which has risen by 25.7%.

Barclays analyst David Anderson, who raised the price target on Weatherford International, is ranked in the top 12% of Wall Street analysts by WallStreetZen. With an average return of 6.2% and a win rate of 56%, Anderson specializes in the Industrials and Consumer Defensive sectors, among others.

Weatherford International Public Limited Company provides equipment and services for the drilling, evaluation, and production of oil and natural gas in the U.S. and internationally. The company is divided into two segments: Western Hemisphere and Eastern Hemisphere. Its offerings include various artificial lift systems, automation and control systems, and multiphase flow measurement services. Founded in 1972, Weatherford International is headquartered in Houston, Texas.

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