Weatherford International Ltd. rose the most in more than two years after second-quarter profit exceeded analysts’ estimates and it forecast higher sales growth for the year.
Weatherford climbed $2.04, or 10 percent, to $22.49 at 4 p.m. in New York Stock Exchange composite trading. It was the biggest gain since April 21, 2009. Before today, shares in the Geneva-based oilfield-services provider had dropped 10 percent this year.
The company reported net income of $110.1 million, or 15 cents a share, from $59.2 million, or 8 cents, according to a statement today. Excluding costs associated with severance payments and a government investigation, per-share profit was 2 cents more than the average of 32 analysts’ estimates compiled by Bloomberg.
“The company has underperformed for so long,” said Joe Hill, a Houston-based analyst for Tudor Pickering Holt & Co. LLC who rates the company at “accumulate” and owns 9,000 shares. “You finally got some good news on earnings performance that you had this pent-up demand. You’ve probably got some short covering going on today as well.”
Revenue rose 25 percent to $3.05 billion, a record for the company, according to the statement. Weatherford’s 2011 revenue is expected to increase 25 percent from last year, up from the previous estimate of a 20 percent rise.