Weatherford (NR): Solid 3Q performance, raising estimates - Goldman Sachs - October 28, 2005
WFT (NR) recurring 3Q2005 EPS ex-hurricane of $0.80 beat our $0.75 est + $0.74 consensus due to higher other income (+$0.02) + stronger margins (+ $0.02). Performance of acquired PDS unit was also stronger ($0.01). Revenue growth in old WFT Drilling unit was anemic due to weaker L. America (cross- industry theme ex-SLB in 3Q) + E. Hem vs expectations. Improved pricing in N. America has eluded WFT vs peers this cycle, but appears to be emerging. Based on our higher 2006 E&P capex forecast (+20% vs +15%), we are raising our 2005-07 EPS estimates to $2.87/ $4.05/ $4.65 from $2.85/ 3.60/ $4.15. (Goldman Sachs & Co., and or one of its affiliates, is acting as financial advisor to Weatherford International, Inc. in the proposed acquisition of Precision Energy Corporation's Energy Services Division and International Contract Drilling Division. Goldman Sachs & Co., and or one of its affiliates, will receive a fee for its financial advisor role.)
Each of the analysts named below hereby certifies that, with respect to each subject company and its securities for which the analyst is responsible in this report, (1) all of the views expressed in this report accurately reflect his or her personal views about the subject companies and securities, and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report: Terry Darling, Jerry Revich. |
