Why Foster Wheeler Shares Popped

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 engineering and construction company Foster Wheeler (UNKNOWN: FWLT.DL  ) climbed 11% today after its quarterly results and outlook impressed Wall Street.

So what: The stock has been volatile over the past year on concerns over weak global demand, but today's wide Q2 earnings beat -- adjusted EPS of $0.54 versus the consensus of $0.33 -- coupled with upbeat guidance naturally eases some of that worry. While revenue in the quarter slipped 8%, operating margins in both its global engineering and construction and global power segments increased nicely over the year-ago period, giving analysts plenty of good vibes about its profitability going forward.

Now what: Don't expect the operating momentum to slow anytime soon. "We are raising our full-year earnings guidance," said CEO Kent Masters. "We now expect our full-year 2013 adjusted diluted earnings per share from continuing operations to be moderately above $1.54, due in part to the company's strong performance in the second quarter of 2013." Of course, with the stock flirting with 52-week highs and trading at a P/E around 25, much of that bullishness might already be baked into the price.

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report, "3 Stocks That Will Help You Retire Rich", names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

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.

Compare Brokers

Fool Disclosure

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: 2586777, ~/Articles/ArticleHandler.aspx, 9/26/2016 6:37:03 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...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
FWLT.DL $0.00 Down +0.00 +0.00%
Foster Wheeler CAPS Rating: ****