Why Foster Wheeler's Wheels Fell Off

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of construction firm Foster Wheeler (NASDAQ: FWLT  ) dropped 16% today after the company reported earnings.

So what: Revenue fell a whopping 35% from a year ago, to $735.3 million, way below the $981.7 million estimate. Earnings were also weak, and even when you pull out one-time items earnings per share of $0.27, they fell well short of the $0.46 that analysts expected.  

Now what: Management said to expect flat results as a mild economic recovery takes place. The company expects earnings of about $1.54 per share next year, when analysts expected $2.03, so that didn't help matters, either. Shares trade at 13 times the company's 2013 estimate and, given the direction of results, that's still too expensive for me to jump in today.

Interested in more info on Foster Wheeler? Add it to your watchlist by clicking here.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2289094, ~/Articles/ArticleHandler.aspx, 10/25/2014 4:44:13 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement