Foster Wheeler
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Foster Wheeler missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue shrank, and GAAP earnings per share grew significantly.
Margins increased across the board.
Revenue details
Foster Wheeler booked revenue of $1.13 billion. The 14 analysts polled by S&P Capital IQ predicted a top line of $1.21 billion on the same basis. GAAP reported sales were 6.9% lower than the prior-year quarter's $1.21 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Non-GAAP EPS came in at $0.39. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.45 per share on the same basis. GAAP EPS of $0.34 for Q4 were 31% higher than the prior-year quarter's $0.26 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 13.5%, 170 basis points better than the prior-year quarter. Operating margin was 5.2%, 110 basis points better than the prior-year quarter. Net margin was 3.5%, 80 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.13 billion. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $4.74 billion. The average EPS estimate is $1.83.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,657 members rating the stock outperform and 46 members rating it underperform. Among 495 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 488 give Foster Wheeler a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Foster Wheeler is outperform, with an average price target of $27.43.
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