Weatherford International plc (NASDAQ:WFRD) shareholders might understandably be very concerned that the share price has dropped 53% in the last quarter. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. In that time we've seen the stock easily surpass the market return, with a gain of 10%.
Although Weatherford International has shed US$128m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.
Weatherford International isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Weatherford International grew its revenue by 14% last year. That's not a very high growth rate considering it doesn't make profits. In keeping with the revenue growth, the share price gained 10% in that time. That's not a standout result, but it is solid - much like the level of revenue growth. Given the market doesn't seem too excited about the stock, a closer look at the financial data could pay off, if you can find indications of a stronger growth trend in the future.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
Weatherford International boasts a total shareholder return of 10% for the last year. Unfortunately the share price is down 53% over the last quarter. Shorter term share price moves often don't signify much about the business itself. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.
But note: Weatherford International may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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