Weatherford Rises After Earnings Exceed Analyst Estimates
Weatherford International Ltd. (WFT) rose the most in almost four months after second-quarter profit exceeded analysts’ estimates and it forecast higher sales growth for the year.
Weatherford climbed $1.69, or 8.3 percent, to $22.14 at 12:22 p.m. in New York Stock Exchange composite trading. The company rose as much as 10 percent, the biggest intraday gain since March 29. 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.
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