Like most other builders, Foster Wheeler offered a solid quarter. Revenue rose about 42%, margins expanded (though gross margins were lower), and EBITDA grew about 37% from last year, net of some one-time items. New award growth was also quite strong, and the backlog continues to grow.
The story at Foster Wheeler won't look too different from those of other companies like Fluor
Perhaps akin to Chicago Bridge & Iron
Foster Wheeler doesn't really stand out as a compelling bargain to me today. I certainly wouldn't argue against the notion that it might see better or stronger-than-average earnings leverage in the next few years, since it's so focused on the energy/chemical markets. But that would give the company a higher risk rating as well.
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Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).