Weatherford International (NASDAQ:WFRD) Issues Quarterly Earnings Results

Key Points

• Earnings beat: Weatherford reported EPS of $1.49 vs. the $1.05 consensus (beat by $0.44) on revenue of $1.15 billion, and logged a 28.07% ROE with an 8.76% net margin.
• Dividend increase: The company raised its quarterly dividend to $0.275 (from $0.25), equal to a $1.10 annualized payout and a 1.1% yield with an 18.55% payout ratio.
• Market and insider activity: Shares traded down to $99.63 post-release (market cap $7.15B, PE 16.8), CEO Girish Saligram sold 100,000 shares at $105.50 ($10.55M), and analysts show a consensus "Moderate Buy" with an average target of $102.

Weatherford International (NASDAQ:WFRD - Get Free Report) posted its quarterly earnings results on Tuesday. The company reported $1.49 earnings per share for the quarter, beating the consensus estimate of $1.05 by $0.44, FiscalAI reports. The business had revenue of $1.15 billion for the quarter, compared to the consensus estimate of $1.14 billion. Weatherford International had a return on equity of 28.07% and a net margin of 8.76%.

Weatherford International Price Performance

Shares of NASDAQ WFRD traded down $0.50 during midday trading on Tuesday, hitting $99.63. The stock had a trading volume of 1,761,681 shares, compared to its average volume of 1,342,210. The company has a market capitalization of $7.15 billion, a PE ratio of 16.80, a P/E/G ratio of 1.29 and a beta of 0.83. The stock has a 50 day simple moving average of $97.33 and a 200-day simple moving average of $84.88. Weatherford International has a 1 year low of $40.12 and a 1 year high of $110.57. The company has a quick ratio of 1.65, a current ratio of 2.19 and a debt-to-equity ratio of 0.86.

Weatherford International Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, March 5th. Stockholders of record on Friday, February 6th were given a $0.275 dividend. This represents a $1.10 annualized dividend and a dividend yield of 1.1%. This is a boost from Weatherford International's previous quarterly dividend of $0.25. The ex-dividend date was Friday, February 6th. Weatherford International's dividend payout ratio (DPR) is 18.55%.

Wall Street Analyst Weigh In

Several research firms have recently commented on WFRD. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Weatherford International in a report on Wednesday, January 21st. Zacks Research downgraded Weatherford International from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, April 14th. UBS Group upped their target price on Weatherford International from $94.00 to $105.00 and gave the stock a "neutral" rating in a research note on Tuesday, March 31st. The Goldman Sachs Group increased their price target on shares of Weatherford International from $83.00 to $107.00 and gave the stock a "neutral" rating in a report on Wednesday, March 4th. Finally, Royal Bank Of Canada began coverage on shares of Weatherford International in a report on Wednesday, March 18th. They set an "outperform" rating and a $105.00 price target on the stock. Seven equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $102.00.

Insider Buying and Selling at Weatherford International

In other news, CEO Girish Saligram sold 100,000 shares of the firm's stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $105.50, for a total value of $10,550,000.00. The transaction was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 1.60% of the company's stock.

Hedge Funds Weigh In On Weatherford International

A number of institutional investors have recently added to or reduced their stakes in WFRD. Smartleaf Asset Management LLC raised its stake in Weatherford International by 127.1% during the fourth quarter. Smartleaf Asset Management LLC now owns 318 shares of the company's stock worth $25,000 after purchasing an additional 178 shares during the period. Los Angeles Capital Management LLC purchased a new position in Weatherford International during the fourth quarter worth about $26,000. EverSource Wealth Advisors LLC raised its stake in Weatherford International by 83.5% during the second quarter. EverSource Wealth Advisors LLC now owns 556 shares of the company's stock worth $28,000 after purchasing an additional 253 shares during the period. Johnson Financial Group Inc. purchased a new position in Weatherford International during the third quarter worth about $52,000. Finally, Parkside Financial Bank & Trust raised its position in Weatherford International by 281.3% in the fourth quarter. Parkside Financial Bank & Trust now owns 976 shares of the company's stock valued at $76,000 after purchasing an additional 720 shares during the period. Hedge funds and other institutional investors own 97.23% of the company's stock.

About Weatherford International

Weatherford International NASDAQ: WFRD is a global oilfield services company specializing in the development, design and manufacturing of equipment and technologies for oil and natural gas drilling, evaluation, completion and production. The company’s core offerings include well construction services such as directional drilling and wellbore positioning, well completion solutions that encompass sand control and zonal isolation technologies, and production enhancement services involving artificial lift systems and well intervention tools.

In addition to its comprehensive service lines, Weatherford provides a range of drilling optimization and reservoir evaluation products.

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