Investing.com – Piper Sandler has reiterated its ‘Overweight’ rating and a $115.00 price target for Weatherford International (NASDAQ:WFRD) following the release of the company’s latest quarterly results.
Weatherford reported an adjusted EBITDA of $233 million, surpassing Piper Sandler’s estimate of $228 million and the consensus of $230 million. However, revenue saw an 11% quarter-over-quarter decrease, reaching $1,152 million, which fell short of Piper Sandler’s $1,138 million estimate and the $1,140 million consensus. This resulted in EBITDA margins of 20.2%.
The company successfully mitigated lost revenue and increased costs stemming from the U.S./Israel-Iran conflict through strong performance in other segments of its business. Notably, Latin America’s decline was 10% quarter-over-quarter, better than Piper Sandler’s 16% estimate, with management attributing this to artificial lift operations in Argentina. Free cash flow stood at $82 million, significantly beating Piper Sandler’s $20 million estimate and the $34 million consensus, contributing to a healthy 0.4x net leverage. Weatherford maintains a current ratio of 3.44, and InvestingPro data indicates the stock is trading near its Fair Value of $103.44, with shares currently priced at $105.10. The stock has delivered an impressive 125% return over the past year, though it’s worth noting that 8 analysts have recently revised their earnings estimates downward for the upcoming period.
Looking ahead, management has guided second-quarter 2026 EBITDA to be in the range of $195 million to $220 million, or $208 million at the midpoint. This figure is 12% below the $230 million consensus. Margins are projected to slip 70 basis points to 19.5%, implying 30% decrementals, primarily due to the ongoing Middle East conflict. Despite this, management maintains its second-half 2026 outlook, contingent on the conflict resolving by the end of the second quarter of 2026.
In related news, Weatherford International recently announced its first-quarter earnings for 2026, showcasing a strong earnings per share (EPS) performance but missing revenue expectations. The company achieved an EPS of $1.49, significantly exceeding the forecasted $1.07 by 39.25%. However, revenue was reported at $1.152 billion, slightly below the anticipated $1.15 billion. These mixed financial results, particularly the revenue miss amidst geopolitical challenges, have drawn investor attention, though specific stock price movements were not detailed. Investors and analysts are expected to closely monitor Weatherford’s performance in the coming quarters.
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