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What: The shares of Weatherford International (NYSE:WFT) 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.
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