NEW YORK (TheStreet) -- Weatherford International (WFT) - Get Report shares are tumbling 2.21% to $9.75 on Friday along with decreasing oil prices as investors continue to express concern about the oil supply glut.
Crude oil (WTI) is falling 0.28% to $45.93 a barrel and Brent crude is gaining 0.57% to $49.08 per barrel, according to the CNBC.com index.
In addition, expectation that oil demand will slow in China also put further pressure on oil's futures, the Wall Street Journal reports.
Overall, analysts are bearish on oil's futures based on the outlook that global stock build of 1.7 million barrels a day will continue into next year.
Based in Switzerland, Weatherford provides equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide.
Separately, TheStreet Ratings team rates WEATHERFORD INTL PLC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
We rate WEATHERFORD INTL PLC (WFT) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Energy Equipment & Services industry. The net income has significantly decreased by 320.8% when compared to the same quarter one year ago, falling from $77.00 million to -$170.00 million.
- Net operating cash flow has significantly decreased to $134.00 million or 61.71% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 40.42%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 320.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- WEATHERFORD INTL PLC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, WEATHERFORD INTL PLC reported poor results of -$0.75 versus -$0.44 in the prior year. This year, the market expects an improvement in earnings (-$0.34 versus -$0.75).
- WFT, with its decline in revenue, underperformed when compared the industry average of 31.2%. Since the same quarter one year prior, revenues fell by 42.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: WFT