The 10-second takeaway
For the quarter ended March 31 (Q1), Federal-Mogul missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Federal-Mogul booked revenue of $1.76 billion. The two analysts polled by S&P Capital IQ predicted sales of $1.80 billion on the same basis. GAAP reported sales were 2.3% higher than the prior-year quarter's $1.72 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 $0.37. The one earnings estimate compiled by S&P Capital IQ forecast $0.50 per share on the same basis. GAAP EPS of $0.32 for Q1 were 37% lower than the prior-year quarter's $0.51 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.7%, 50 basis points worse than the prior-year quarter. Operating margin was 4.3%, 90 basis points worse than the prior-year quarter. Net margin was 1.8%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.90 billion. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $7.29 billion. The average EPS estimate is $2.04.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 42 members rating the stock outperform and 26 members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 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 $18.
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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.