Story updated at 10 a.m. to reflect market activity.
Shares of Weatherford gained 1.8% t $20.84 in morning trading.
The analyst firm also raised its EPS estimates for the company through 2015. Weatherford has strong earnings momentum according to Credit Suisse analysts.
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Separately, TheStreet Ratings team rates WEATHERFORD INTERNATIONAL as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate WEATHERFORD INTERNATIONAL (WFT) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including unimpressive growth in net income and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, WFT's share price has jumped by 44.16%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- WEATHERFORD INTERNATIONAL 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. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WEATHERFORD INTERNATIONAL continued to lose money by earning -$0.44 versus -$1.02 in the prior year. This year, the market expects an improvement in earnings ($1.00 versus -$0.44).
- WFT, with its decline in revenue, underperformed when compared the industry average of 9.2%. Since the same quarter one year prior, revenues slightly dropped by 6.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- Net operating cash flow has significantly decreased to -$406.00 million or 3590.90% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- 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 286.4% when compared to the same quarter one year ago, falling from $22.00 million to -$41.00 million.
- You can view the full analysis from the report here: WFT Ratings Report