Sell-side analysts on Wall Street are anticipating that Weatherford International plc (NYSE:WFT) will report earnings of $-0.33 per share when the company issues their quarterly report today. This is the consensus EPS number according to data from Zack’s Research. Weatherford International plc (NYSE:WFT) posted earnings of $-0.13 for the period ended 2015-12-31.
Leading up to the next earnings announcements investors should pay close attention to the analysts sentiment on the stock and which direction they are revising their estimates. Over the past 6 months 7 sell-side analysts have lowered their long term earnings per share estimates on the stock. During that same period 0 analysts have increased their earnings expectations for the firm. So what does this mean? Typically if a large percentage of analysts lower their revisions, the company is more likely to disappoint the Street. If a large number of brokerage firms increase estimates prior to earnings, the company is more likely to impress with their numbers.
How the estimated EPS differs from the actual earnings number is what investors will be paying particularly close attention to.
Most recently Weatherford International plc (NYSE:WFT) posted a surprise factor of -62.5%. The actual number was $-0.15 away from the Zacks consensus immediately prior to the actual release. A significant surprise factor can lead to stock volatility and swings in the share price in the hours and days following the earnings report.
Projected Stock Movement
Research brokerage firms covering shares of Weatherford International plc (NYSE:WFT) are anticipating on a consensus basis that the stock will reach $7.602 within the next 52 weeks. Of the analysts providing short term targets, the most bullish analyst has a $12 target on the stock. On the other end, the most conservative has a short term target of $5. This is based on the 20 analysts taken into consideration by Zacks. The consensus price target was last revised on 2017-01-30.
Each of the 20 covering analysts have also provided a Buy, Sell or Hold recommendation on the stock. As of 2017-01-30, 11 have a Strong Buy rating on the stock, 1 have a Buy rating, 8 have a Hold rating and 1 have a Sell or Strong Sell. Taking a look back three months ago to compare sentiment, at that time 11 had a Strong Buy, 1 had a Buy, 8 had a Hold and 1 had a sell rating.
Zacks also provides a simplified scale for analyst recommendations. They use a one to five scale where they translate brokerage firm Buy/Sell/Hold recommendations into an average broker rating. A low number in the 1-2 range typically indicates a Buy, 3 represents a Hold and 4-5 represents a consensus Sell rating. Weatherford International plc (NYSE:WFT) currently has an ABR of 2.09 heading into today’s announcement. This number is also based on the 20 sell-side firms polled by Zacks
This article is informational purposes only and should not be considered a recommendation to buy or sell Weatherford International plc (NYSE:WFT)