Why Weatherford Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: The shares of Weatherford International were getting a lift today, climbing as much as 10% after posting first-quarter results last night.

So what: Shares of the oilfield-services provider actually opened flat, but quickly gained, as investors were encouraged by management comments and a bright outlook. For the quarter reported, Weatherford delivered an EPS of 0.15, matching expectations, while revenue improved 7%, to $3.8 billion. Management also talked about the company's plans to drive profitability, and said it expects to see increased earnings out of Mexico despite a shift in location.


Now what: Today's jump seems a bit exaggerated, as there was no particularly strong news out of the report, but investors felt reassured about a stock that has languished over the last year. Weatherford had badly missed estimates over the last three reports, so investors may have been happy just to see it meet expectations. Estimates over the next year may be optimistic, as analysts see 50% EPS growth. Investors may want to consider looking at Schlumberger or Halliburton for a play in this sector.

Get more on Weatherford. Add the company to your Watchlist by clicking here.

The article Why Weatherford Shares Jumped originally appeared on Fool.com.

Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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