Weatherford International (WFRD): Evaluating Valuation After Quarterly Revenue and Earnings Miss

Weatherford International (WFRD) released third-quarter results showing a drop in both revenue and net income compared to last year, falling short of earnings expectations. This earnings miss is capturing investor attention today.

See our latest analysis for Weatherford International.

Weatherford’s momentum has cooled markedly over the past year, with a 1-year total shareholder return of -15.9% reflecting the impact of softer earnings and revenue. Still, the share price has gained nearly 16% in the past 90 days, suggesting investors are starting to take notice of recent buybacks, new dividend declarations, and guidance pointing to solid performance in the Middle East and Latin America. For both short-term traders and long-term holders, performance has been mixed, but the big moves lately hint at renewed optimism as risk perceptions adjust.

If Weatherford’s recent swings have you searching for other potential opportunities, now’s a great moment to broaden your perspective and discover fast growing stocks with high insider ownership

Given the recent dip in earnings and a share price still below most analyst targets, the question now is whether Weatherford is trading at a discount or if the market has already adjusted for all of its potential upside.

Most Popular Narrative: 16.4% Undervalued

Weatherford International’s consensus narrative suggests the fair value could be much higher than its last close, which hints at a significant upside if the narrative holds true. The stage is set for a closer look at the drivers fueling this optimism.

Balance sheet strength and disciplined capital allocation enable investment in innovation, cost optimization, and attractive market opportunities, enhancing resilience and long-term returns.

Read the complete narrative.

Why do so many see hidden value here? This narrative leans on a financial forecast where margins improve and future profit multiples rise, even as sales growth stagnates. It relies on bold assumptions that lead to a higher valuation. Get the full breakdown to see how much depends on these ambitious profit targets.

Result: Fair Value of $80.28 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weakness in key international markets and payment delays in regions like Mexico could still pose challenges for Weatherford's path to a sustained rebound.

Find out about the key risks to this Weatherford International narrative.

Build Your Own Weatherford International Narrative

If you see things differently, or want to test your own assumptions against the latest numbers, you can put together your own view in just a few minutes with Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Weatherford International.

Looking for more investment ideas?

Unlock your next portfolio win by checking out unique opportunities beyond Weatherford. Stay ahead and make smart moves before others catch on by using these handpicked screens:

• Capture high yields and steady income streams by scanning these 17 dividend stocks with yields > 3% offering attractive returns above the market average.
• Catch emerging tech leaders set to transform healthcare with the latest breakthroughs by starting your search with these 33 healthcare AI stocks.
• Seize potential value opportunities others may have overlooked with these 875 undervalued stocks based on cash flows focused on companies trading below their intrinsic worth.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com