The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Federal-Mogul missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped to a loss.
Gross margins dropped, operating margins expanded, net margins contracted.
Federal-Mogul reported revenue of $1.65 billion. The two analysts polled by S&P Capital IQ expected a top line of $1.75 billion on the same basis. GAAP reported sales were 4.2% higher than the prior-year quarter's $1.59 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.51. The two earnings estimates compiled by S&P Capital IQ predicted $0.44 per share on the same basis. GAAP EPS were -$2.42 for Q4 against $0.45 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 14.9%, 30 basis points worse than the prior-year quarter. Operating margin was 4.1%, 30 basis points better than the prior-year quarter. Net margin was -14.4%, 1,720 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.82 billion. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $7.42 billion. The average EPS estimate is $2.13.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 41 members out of 67 rating the stock outperform, and 26 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Federal-Mogul a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Federal-Mogul is outperform, with an average price target of $19.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.