Weatherford climbed 7.2 percent to $13.59 at the close in New York, the most for the Geneva-based company since Dec. 20, 2011.
While work in Mexico’s Chicontepec region is declining and moving to other areas of the country, Weatherford expects profit margins to rise through the year, Chief Executive Officer Bernard Duroc-Danner told analysts and investors today on a conference call.
“The company did a good job of putting away concerns,” Byron Pope, an analyst at Tudor Pickering Holt & Co. said today in a telephone interview. He rates the shares at “accumulate,” which means investors should buy the shares, and owns none.
Earnings per share in the second quarter are forecast to be in the range of 16 and 18 cents, Duroc-Danner said. Excluding one-time items, the company is expected to earn 18 cents, according to the average of 29 analysts’ estimates compiled by Bloomberg. The company cut capital spending guidance to a range of 8 to 10 percent of total revenue, down from a range of of 8 to 12.
“People definitely want to see them rein in capex,” said Luke Lemoine, an analyst at Capital One Southcoast in New Orleans, who rates the shares a buy and owns none.
Excluding charges, Weatherford reported first quarter earnings of 15 cents, one cent below the average of 30 analyst estimates compiled by Bloomberg.
“The fact that the quarter was reasonably normal, without a lot of noise, was positive,” Stephen Gengaro, an analyst at Sterne Agee in New York, said today in a telephone interview. “They’ve had a lot of challenges.”
Schlumberger Ltd., Halliburton Co. and Baker Hughes Inc. are the world’s largest oilfield-services providers.
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