The 10-second takeaway
For the quarter ended March 31 (Q1), Foster Wheeler whiffed on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share grew significantly.
Margins expanded across the board.
Foster Wheeler booked revenue of $933.1 million. The 13 analysts polled by S&P Capital IQ anticipated a top line of $1.12 billion on the same basis. GAAP reported sales were 10.0% lower than the prior-year quarter's $1.04 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.40. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.40 per share. GAAP EPS of $0.38 for Q1 were 111% higher than the prior-year quarter's $0.18 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 14.9%, 530 basis points better than the prior-year quarter. Operating margin was 6.4%, 460 basis points better than the prior-year quarter. Net margin was 4.4%, 220 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.19 billion. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $4.72 billion. The average EPS estimate is $1.82.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,647 members out of 1,695 rating the stock outperform, and 48 members rating it underperform. Among 411 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 402 give Foster Wheeler a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Foster Wheeler is outperform, with an average price target of $30.56.
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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.