The 10-second takeaway
For the quarter ended March 30 (Q1), General Cable beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share contracted significantly.
Margins contracted across the board.
General Cable reported revenue of $1.43 billion. The seven analysts polled by S&P Capital IQ looked for a top line of $1.41 billion on the same basis. GAAP reported sales were 1.0% lower than the prior-year quarter's $1.45 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 $0.48. The seven earnings estimates compiled by S&P Capital IQ forecast $0.33 per share. GAAP EPS of $0.49 for Q1 were 30% lower than the prior-year quarter's $0.70 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 10.3%, 120 basis points worse than the prior-year quarter. Operating margin was 3.7%, 130 basis points worse than the prior-year quarter. Net margin was 1.7%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.56 billion. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $6.08 billion. The average EPS estimate is $2.51.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 611 members out of 635 rating the stock outperform, and 24 members rating it underperform. Among 160 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 153 give General Cable a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on General Cable is outperform, with an average price target of $41.29.
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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.