Raymond James has adjusted its price target for Tidewater (TDW, Financial), reducing it to $70 from the previous $76 while maintaining an Outperform rating. The firm notes that Tidewater began 2025 on a strong note, with revenue exceeding predictions by 3%. Additionally, the company's vessel operating margin performed better than anticipated, according to an analyst’s report.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Tidewater Inc (TDW, Financial) is $58.00 with a high estimate of $72.00 and a low estimate of $30.00. The average target implies an upside of 44.17% from the current price of $40.23. More detailed estimate data can be found on the Tidewater Inc (TDW) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Tidewater Inc's (TDW, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Tidewater Inc (TDW, Financial) in one year is $83.00, suggesting a upside of 106.31% from the current price of $40.23. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Tidewater Inc (TDW) Summary page.
TDW Key Business Developments
Release Date: May 06, 2025
- Revenue: $333.4 million for Q1 2025.
- Gross Margin: 50.1% for Q1 2025.
- Net Income: $42.7 million or $0.83 per share for Q1 2025.
- Free Cash Flow: $94.7 million for Q1 2025.
- Average Day Rate: $22,303 per day, setting a new quarterly record.
- Utilization Rate: Increased to 78.4% in Q1 2025 from 77.7% in Q4 2024.
- Adjusted EBITDA: $154.2 million for Q1 2025.
- Share Repurchase: $90 million spent, reducing share count by approximately 2.5 million shares.
- Capital Expenditures: $10.3 million in Q1 2025.
- Dry Dock Costs: $43.3 million incurred in Q1 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tidewater Inc (TDW, Financial) reported first quarter revenue of $333.4 million, exceeding expectations due to higher average day rates and better utilization.
- The company achieved a gross margin of over 50% for the second consecutive quarter, indicating strong operational efficiency.
- Tidewater Inc (TDW) generated approximately $95 million of free cash flow in the first quarter, marking the second highest quarterly free cash flow since the offshore recovery began.
- The company fully utilized its $90 million share repurchase program, reducing the outstanding share count by 2.5 million shares, demonstrating a commitment to returning capital to shareholders.
- Tidewater Inc (TDW) maintains a relatively low leverage profile and a highly scalable global operating footprint, providing flexibility to optimize the business amid macroeconomic uncertainties.
Negative Points
- The company anticipates a 5% sequential decline in revenue for the second quarter, with a projected gross margin of 44%, due to lower revenue and higher costs associated with idle days and repair expenses.
- Tidewater Inc (TDW) faces challenges in the North Sea and Mexico markets, which continue to experience demand-side issues.
- The company has not received payment for several quarters from its primary customer in Mexico, with an outstanding receivable balance of $35.1 million as of March 31.
- There is uncertainty regarding the impact of recent US-led tariff regimes on global trading patterns and the subsequent effect on the global economy and energy needs.
- The vessel supply outlook remains unchanged, with newbuild discussions largely ceased, and the modest number of newbuilds on order not expected to deliver until late 2026 or 2027.
