The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ferro missed estimates on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Ferro booked revenue of $442.7 million. The five analysts polled by S&P Capital IQ looked for sales of $464.2 million on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $537.0 million.
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 -$0.08. The eight earnings estimates compiled by S&P Capital IQ anticipated -$0.03 per share on the same basis. GAAP EPS were -$0.33 for Q4 versus $0.02 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 16.9%, 330 basis points worse than the prior-year quarter. Operating margin was -0.5%, 700 basis points worse than the prior-year quarter. Net margin was -6.5%, 690 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $493.9 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $2.15 billion. The average EPS estimate is $0.66.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 145 members out of 160 rating the stock outperform, and 15 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 62 give Ferro a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ferro is outperform, with an average price target of $7.83.
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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.