US$76.13: That's What Analysts Think Weatherford International plc (NASDAQ:WFRD) Is Worth After Its Latest Results

It's been a sad week for Weatherford International plc (NASDAQ:WFRD), who've watched their investment drop 11% to US$41.44 in the week since the company reported its quarterly result. The result was positive overall - although revenues of US$1.2b were in line with what the analysts predicted, Weatherford International surprised by delivering a statutory profit of US$1.03 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the consensus from Weatherford International's seven analysts is for revenues of US$5.02b in 2025, which would reflect a perceptible 6.1% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to descend 16% to US$5.41 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.12b and earnings per share (EPS) of US$5.77 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

View our latest analysis for Weatherford International

The average price target fell 5.4% to US$76.13, with reduced earnings forecasts clearly tied to a lower valuation estimate. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Weatherford International analyst has a price target of US$90.00 per share, while the most pessimistic values it at US$66.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 8.0% annualised decline to the end of 2025. That is a notable change from historical growth of 7.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.4% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Weatherford International is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Weatherford International. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Weatherford International. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Weatherford International analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Weatherford International is showing 2 warning signs in our investment analysis , you should know about...

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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.