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Exploring WFT’s Share Price and Returns after Its Earnings

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Jul. 29 2016, Updated 9:06 a.m. ET

Weatherford International’s share price reaction

Weatherford International (WFT) released its financial results for 2Q16 on July 27, 2016. On that day, its stock price reacted negatively, falling by ~3.7% to $5.73 from the previous day’s close. Since the beginning of the year, its share price has fallen by ~34%.

Schlumberger (SLB), which released its financial information for 2Q16 on July 21, saw a ~1% fall in its share price on the day of the earnings release.

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WFT’s share price returns compared to the industry

In the past year, Weatherford International’s stock has generated a return of -46% net of dividends. In the past year, WFT has underperformed the VanEck Vectors Oil Services ETF (OIH), which has generated a -9% return. The Energy Select Sector SPDR ETF (XLE), the broader energy industry ETF, has produced a -2.5% return.

Weatherford International has hugely underperformed the SPDR S&P 500 ETF (SPY), which has produced ~5.7% return during the same period. WFT performed in line with the US rig count, which has fallen by 47% in the past year.

What could drive Weatherford International in the future?

During 2Q16, WFT received a number of contracts, which could be a driving force for the company. These include:

  • a five-year drilling services contract with a Middle Eastern national oil company, which could help WFT’s market share to increase in the region
  • a number of multiyear contracts related to well completion services in Russia’s Sakhalin Island
  • WFT’s recent completion of a rigless intervention project in the Gulf of Mexico

Next, we’ll discuss Wall Street analysts’ targets for Weatherford International.

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