Tidewater (NYSE:TDW) Trading 11.3% Higher - Should You Buy?

Key Points

• Tidewater shares jumped 11.3% to about $79.56 after second-quarter revenue reached $342.3 million, exceeding expectations, while average and leading-edge vessel day rates improved.
• Cash generation remained strong, with $64.4 million in free cash flow, $613.5 million in cash and a $500 million share-repurchase authorization; the planned WSUT acquisition could further expand the fleet and earnings base.
• However, net income and EPS declined sharply year over year, and 2026 revenue guidance of $1.42 billion–$1.47 billion trails consensus. Analysts maintain a consensus “Hold” rating with an $89.33 price target.

Shares of Tidewater Inc. (NYSE:TDW - Get Free Report) were up 11.3% during trading on Tuesday . The company traded as high as $79.96 and last traded at $79.5590. Approximately 248,728 shares changed hands during mid-day trading, a decline of 68% from the average daily volume of 785,333 shares. The stock had previously closed at $71.48.

Tidewater News Summary

Here are the key news stories impacting Tidewater this week:

• Positive Sentiment: Second-quarter revenue of $342.3 million exceeded analyst expectations of approximately $330 million and rose 4.9% sequentially. Revenue was broadly stable year over year, supporting the view that demand for Tidewater’s offshore support vessels remains resilient. Tidewater Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Average day rates increased to $22,938, while leading-edge day rates rose 7.5% sequentially to $24,341. These improvements indicate potential pricing power and provide support for future revenue growth. Tidewater Q2 Revenue Rises
• Positive Sentiment: Cash generation remained strong, with $67.0 million of operating cash flow and $64.4 million of free cash flow. Tidewater ended the quarter with $613.5 million in cash and retains a $500 million share-repurchase authorization. Tidewater Reports Results for the Six Months Ended June 30 2026
• Positive Sentiment: The company expects to close its WSUT acquisition around September 1, 2026, which could expand its fleet and earnings base. Analysts cited in the reports have median price targets near $90, above the recent trading level.
• Neutral Sentiment: EPS was $0.43. Results beat the Zacks consensus estimate of $0.32, but fell short of the $0.46 estimate cited by MarketBeat, reflecting differing consensus calculations. Tidewater Q2 Earnings Snapshot
• Negative Sentiment: Profitability weakened materially: net income fell to $21.7 million from $72.9 million a year earlier, while EPS declined from $1.46. Gross and operating profit also decreased as costs and capital spending increased. Tidewater Releases Q2 2026 Earnings
• Negative Sentiment: 2026 revenue guidance of $1.42 billion to $1.47 billion is below the roughly $1.5 billion consensus estimate, potentially limiting near-term upside. Recent insider activity also shows sales without reported purchases, though institutional buying was mixed.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on TDW. Zacks Research cut shares of Tidewater from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, May 19th. Weiss Ratings lowered Tidewater from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, July 28th. Pickering Energy Partners upgraded Tidewater from an "underperform" rating to a "neutral" rating in a research note on Thursday, June 11th. Barclays upped their target price on Tidewater from $80.00 to $86.00 and gave the stock an "equal weight" rating in a research report on Thursday, May 7th. Finally, Fearnley Fonds upgraded Tidewater from a "hold" rating to a "strong-buy" rating in a report on Friday, June 5th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $89.33.

Tidewater Price Performance

The company has a debt-to-equity ratio of 0.48, a quick ratio of 3.22 and a current ratio of 3.33. The business's fifty day simple moving average is $72.31 and its 200 day simple moving average is $75.14. The stock has a market cap of $4.17 billion, a price-to-earnings ratio of 14.03 and a beta of 0.53.

Tidewater (NYSE:TDW - Get Free Report) last announced its earnings results on Monday, August 3rd. The oil and gas company reported $0.43 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.46 by ($0.03). Tidewater had a return on equity of 8.79% and a net margin of 22.16%.The business had revenue of $342.29 million for the quarter, compared to analysts' expectations of $329.97 million. During the same period in the previous year, the firm posted $1.46 earnings per share. The firm's revenue was up .3% compared to the same quarter last year. Research analysts predict that Tidewater Inc. will post 3.52 EPS for the current fiscal year.

Institutional Trading of Tidewater

Hedge funds have recently made changes to their positions in the stock. Royal Bank of Canada raised its holdings in Tidewater by 22.6% in the first quarter. Royal Bank of Canada now owns 23,169 shares of the oil and gas company's stock valued at $980,000 after acquiring an additional 4,278 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Tidewater by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 29,028 shares of the oil and gas company's stock worth $1,227,000 after purchasing an additional 1,271 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Tidewater by 4.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 44,833 shares of the oil and gas company's stock worth $1,895,000 after purchasing an additional 1,931 shares during the last quarter. Cetera Investment Advisers raised its stake in shares of Tidewater by 4.1% in the 2nd quarter. Cetera Investment Advisers now owns 8,010 shares of the oil and gas company's stock valued at $370,000 after purchasing an additional 314 shares in the last quarter. Finally, Invesco Ltd. raised its stake in shares of Tidewater by 12.1% in the 2nd quarter. Invesco Ltd. now owns 227,443 shares of the oil and gas company's stock valued at $10,492,000 after purchasing an additional 24,609 shares in the last quarter. Institutional investors and hedge funds own 95.13% of the company's stock.

About Tidewater

Tidewater Inc is a leading global provider of offshore marine support vessels, serving the energy sector with a focus on the oil and gas industry. Headquartered in Houston, Texas, the company operates a diverse fleet of platform supply vessels (PSVs), anchor handling tug supply vessels (AHTSs), crew boats and other specialized vessels designed to support offshore drilling, production and construction activities.

The company's fleet is equipped to handle a range of maritime services, including the transport of personnel, equipment and bulk materials; anchor handling and mooring operations; and subsea construction support.

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