General Cable (NYSE: BGC ) reported earnings on Aug. 3. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 29 (Q2), General Cable missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins increased, net margins dropped.
General Cable booked revenue of $1.48 billion. The six analysts polled by S&P Capital IQ expected revenue of $1.60 billion on the same basis. GAAP reported sales were 3.5% lower than the prior-year quarter's $1.53 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.74. The seven earnings estimates compiled by S&P Capital IQ forecast $0.73 per share. GAAP EPS of $0.43 for Q2 were 37% lower than the prior-year quarter's $0.68 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 12.0%, 60 basis points better than the prior-year quarter. Operating margin was 5.3%, 10 basis points better than the prior-year quarter. Net margin was 1.5%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.45 billion. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $5.78 billion. The average EPS estimate is $2.48.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 615 members out of 644 rating the stock outperform, and 29 members rating it underperform. Among 146 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 138 give General Cable a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on General Cable is outperform, with an average price target of $44.00.
Over the decades, small-cap stocks, like General Cable have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.