Weatherford International plc (WFT) – Has it Hit Bottom?

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Weatherford International plc (WFT) – Has it Hit Bottom?

 

Swiss-based oil and gas equipment and service provider Weatherford International plc (WFT, $7.39, up $1.12) rose 17.86% after the company reported 4th quarter results that beat on earnings and was in-line on revenue. For the quarter ending December 31, it reported earnings per share (EPS) of -$0.13 on $2.01 billion in revenue, down from $0.32 on $3.73 billion in revenue a year ago. But analysts had expected EPS of -$0.19 on $2.01 billion in revenue. Investors also cheered that the company plans to generate free cash flow (FCF) between $600 million and $700 million in 2016, up from analysts’ estimates of $495 million. Further, the company’s FCF was $168 million for the 4th quarter, and its full-year FCF was positive for the first time since 2010.

 

The $5.76 billion company’s stock peaked at $23 in July 2014 and has plunged with the fall in oil prices. To cope, the company cut 14,000 of its 53,500 workforce in 2015 and plans to cut an additional 6,000 jobs during the first half of 2016. The company will also close nine plants over the year. It plans to reduce its capital expenditures (CAPEX) by 56% to $300 million. Since stock price ideally equals the present value of future FCFs, and decreasing CAPEX increases FCF, the stock price should rise.

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Energizer Holdings (ENR) – Earnings Beat But Falling Forecast

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Energizer Holdings (ENR) – Earnings Beat But Falling Forecast

 

Battery and lighting product manufacturer Energizer Holdings (ENR, $36.86, up $5.28) surged 16.72% after the company reported 1st quarter results that beat on both earnings and revenue. For the quarter ending December 31, it reported earnings per share (EPS) of $1.16 on $506.8 million in revenue, up from $1.14 on $501.3 million in revenue a year ago. Analysts had expected EPS of $0.71 on $458.7 million in revenue, an EPS surprise of $0.45 or 63.4%. For the 2016, the company expects full-year EPS at the upper end of $1.90 to $2.10. Full-year 2015 EPS was $2.82 on revenue of $1.6 billion, down from 2014’s EPS of $3.35 on revenue of $1.8 billion.

 

The $2.28 billion company spun off its personal care business on July 1, 2015. As can be seen from the graph below, the stock price recently broke out from its IPO price. The company said that currency exposure and weakness in the economies of Latin America, particularly its Venezuelan operations, are expected to decrease revenue by $50-$60 million. Despite the earnings surprise, revenue will probably fall in 2016.

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Royal Caribbean Cruises (RCL) – Has It Gotten Too Low?

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  Royal Caribbean Cruises (RCL) – Has It Gotten Too Low?   Cruise ship operator Royal Caribbean Cruises (RCL, $71.70, down $12.82) plunged 15.17% after the company reported 4th quarter results that beat on earnings but missed on revenue. For the quarter ending December 31, it reported earnings per share (EPS) of $0.94 on $1.90 […]

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TimkenSteel Corporation (TMST) – Bottoming?

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  TimkenSteel Corporation (TMST) – Bottoming?   Global leader in high performance alloy steel products and services TimkenSteel (TMST, $7.36, down $1.65) plunged 18.31% on likely profit-taking after surging 75% Friday as the company’s 4th quarter results beat estimates on both earnings and revenue. For the quarter ending December 31, it reported earnings per share […]

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Tupperware Brands (TUP) – Oversold

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  Tupperware Brands (TUP) – Oversold   Food storage and beauty and personal care products maker Tupperware Brands (TUP, $43.97, down $7.51) plunged 14.59% after the company reported 4th quarter earnings and gave a forecast that missed estimates. For the quarter ending December 31, it reported earnings per share (EPS) of $1.35 on $592.1 million […]

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International Paper (IP) – Buy the Pullback

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  International Paper (IP) – Buy the Pullback   Worldwide leading provider of paper and packaging products International Paper (IP, $32.58, down $3.87) plunged 10.62% after an analyst at Citigroup (C) downgraded the company to neutral from buy, citing falling paper prices. In January, kraftliner and corrugated paper prices fell 2.4% to $15 per ton […]

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