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HOUSTON - Weatherford International plc (NASDAQ: WFRD), a global energy services company currently valued at $3.6 billion, has entered into an agreement with Amazon Web Services (AWS) to enhance its digital capabilities in the energy sector. According to InvestingPro analysis, the company maintains a strong financial health score and appears undervalued at current levels. The collaboration will see Weatherford migrate and modernize its software and hardware suite on AWS, aiming to drive innovation and operational efficiency for its customers.
The company’s Modern Edge Platform, which combines software-enabled hardware with Weatherford’s control system, CygNet, will be part of the migration to AWS. This platform is designed to integrate with existing infrastructure, allowing energy companies to modernize their operations with minimal disruption. With a healthy current ratio of 2.08 and liquid assets exceeding short-term obligations, Weatherford demonstrates strong operational stability for this digital transformation initiative.
Additionally, AWS will support Weatherford in developing next-generation technologies to bolster its Unified Data Model. This model enables the integration, harmonization, and analysis of multi-asset data, facilitating data-driven decision-making for customers.
The agreement also includes the enhancement of the WFRD Software Launchpad, a platform that provides access to both Weatherford-built and Weatherford-partnered applications. This platform ensures customer control over data while managing multiple software solutions.
Girish Saligram, President and CEO of Weatherford, expressed enthusiasm about the partnership, stating that it would leverage AWS’s cloud infrastructure to modernize operations and reduce complexity for customers. Howard Gefen, GM for Energy and Utilities at AWS, also remarked on the potential for AWS to accelerate Weatherford’s digital transformation and assist the company in delivering operational and petrotechnical solutions.
Weatherford operates in approximately 75 countries with a diverse workforce of about 18,000 team members. The company is recognized for integrating advanced technologies with digital solutions to create sustainable offerings for energy operations.
This strategic move is aimed at empowering energy companies to optimize their operations and achieve sustainable growth. The company’s financial performance supports this initiative, with a robust EBITDA of $1.19 billion and an impressive return on equity of 38%. For deeper insights into Weatherford’s financial health and growth potential, including 12 additional ProTips and comprehensive valuation metrics, visit InvestingPro. The information for this article is based on a press release statement and InvestingPro data.
In other recent news, Weatherford International PLC reported its first-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $1.03, beating the forecast of $0.92. Revenue for the quarter met expectations at $1.19 billion, indicating stable sales amid challenging market conditions. Despite these positive results, Citi analyst Scott Gruber has revised Weatherford’s stock price target from $90 to $70 while maintaining a Buy rating, citing a reassessment of the company’s financial model and a lowered forecast for future earnings before interest, taxes, depreciation, and amortization (EBITDA).
Raymond James analyst James Rollyson downgraded Weatherford’s stock rating from "Strong Buy" to "Outperform" and reduced the price target to $69, due to challenges related to the company’s exposure in Mexico. Weatherford’s management has updated its guidance, reflecting the impact of certain asset sales, which may stabilize future estimates. The company is focusing on improving free cash flow conversion and maintaining a strong balance sheet, with a forecasted free cash flow of $414 million for 2025, below the consensus of $486 million.
Looking ahead, Weatherford anticipates second-quarter 2025 revenue between $1.165 billion and $1.195 billion, with adjusted EBITDA expected to range from $245 million to $265 million. The company is preparing for potential declines in North American and international revenues but remains optimistic about growth opportunities in the Middle East and Asia. Despite market uncertainties, Weatherford’s strategic initiatives and technology portfolio continue to support its performance and resilience.
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