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Apr 21, 2025 3:00 PM - Rayan Ahmad(Last modified: Apr 22, 2025 2:15 PM)
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Weatherford International plc, listed as NASDAQ:WFRD, is a key player in the Zacks Oil and Gas - Field Services industry. The company is known for its innovative solutions in oilfield services, which include drilling, evaluation, and production. Weatherford competes with other industry giants, but its consistent performance in surpassing earnings estimates sets it apart.
On April 22, 2025, Weatherford is set to release its quarterly earnings, with Wall Street estimating earnings per share (EPS) at $0.89 and revenue at approximately $1.19 billion. Historically, Weatherford has a strong track record of exceeding earnings expectations. In the last two quarters, the company outperformed earnings estimates by an average of 18.39%, as highlighted by Zacks Investment Research.
In the most recent quarter, Weatherford reported earnings of $1.50 per share, surpassing the Zacks Consensus Estimate of $1.34 per share, resulting in an 11.94% surprise. The prior quarter saw an even larger surprise, with earnings of $2.06 per share against an expected $1.65, marking a 24.85% surprise. This consistent performance has led to a positive shift in earnings estimates for the company.
Despite a projected year-over-year decline in earnings and lower revenues for the quarter ending March 2025, Weatherford's stock price movement will largely depend on how actual results compare to these estimates. If the company exceeds expectations, the stock could see an upward movement. Conversely, a miss could lead to a decline, as noted by Zacks Investment Research.
Weatherford's financial metrics indicate a relatively low valuation. The company's price-to-earnings (P/E) ratio is approximately 6.35, and its price-to-sales ratio is about 0.58. The enterprise value to sales ratio stands at around 0.71, suggesting the stock is trading at a low price relative to its revenue. Additionally, the enterprise value to operating cash flow ratio is approximately 4.96, reflecting the company's market value compared to its cash flow from operations.
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