The Weatherford International plc (NASDAQ:WFRD) First-Quarter Results Are Out And Analysts Have Published New Forecasts

Weatherford International plc (NASDAQ:WFRD) just released its latest quarterly results and things are looking bullish. The company beat expectations with revenues of US$1.4b arriving 2.6% ahead of forecasts. Statutory earnings per share (EPS) were US$1.50, 2.3% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Weatherford International

Following the latest results, Weatherford International's nine analysts are now forecasting revenues of US$5.75b in 2024. This would be a notable 8.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 17% to US$7.33. Before this earnings report, the analysts had been forecasting revenues of US$5.73b and earnings per share (EPS) of US$7.02 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of US$140, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Weatherford International at US$184 per share, while the most bearish prices it at US$85.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Weatherford International is forecast to grow faster in the future than it has in the past, with revenues expected to display 11% annualised growth until the end of 2024. If achieved, this would be a much better result than the 1.9% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.8% annually. So it looks like Weatherford International is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Weatherford International following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$140, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Weatherford International. Long-term earnings power is much more important than next year's profits. We have forecasts for Weatherford International going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Weatherford International that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.