Energy services company Weatherford International (NASDAQ:WFRD) was awarded a new five-year contract in Brazil. The company said it secured a contract from Petrobras to provide intervention services. The new contract win is a positive development for the company. Furthermore, Wall Street analysts expect it to deliver improved earnings in Q2, enabling the company to sustain the uptrend.
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WFRD stock has gained over 291% in one year. Furthermore, it is up about 46% year-to-date.
Q2 Earnings to Improve
Weatherford will announce its second-quarter results on Wednesday, July 26, 2023. Wall Street analysts expect WFRD to deliver earnings of $1.13 per share in Q2, compared to a loss of $0.11 per share in the prior-year period. The consensus estimate also indicates sequential improvement.
The company is expected to benefit from increased activity across all its segments, including Drilling and Evaluation, Well Construction and Completion, and Production and Intervention services.
Goldman Sachs analyst Atidrip Modak reiterated a Buy on WFRD stock ahead of the Q2 print. In a note to investors dated July 11, the analyst said that the “offshore contract drilling markets are likely to remain resilient and should see improving dayrates as demand remains strong in the absence of newbuilds.” This will add stability and resilience to WFRD’s earnings.
What is the Price Target for WFRD?
Thanks to the momentum in its business and growing earnings, Wall Street analysts maintain a bullish outlook on WFRD stock.
It has received seven unanimous Buy recommendations for a Strong Buy consensus rating. Further, analysts’ average price target of $91.43 implies 23.37% upside potential from current levels.
