The 10-second takeaway
For the quarter ended June 30 (Q2), Ferro missed estimates on revenues and missed estimates 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 $481.5 million. The five analysts polled by S&P Capital IQ foresaw sales of $507.8 million on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $594.0 million.
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 $0.05. The seven earnings estimates compiled by S&P Capital IQ averaged $0.08 per share. GAAP EPS were -$0.03 for Q2 compared to $0.22 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 18.2%, 130 basis points worse than the prior-year quarter. Operating margin was 2.7%, 460 basis points worse than the prior-year quarter. Net margin was -0.6%, 390 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $509.3 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $1.97 billion. The average EPS estimate is $0.39.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 143 members out of 159 rating the stock outperform, and 16 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Ferro a green thumbs-up, and one 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 $7.13.
Over the decades, small-cap stocks, like Ferro have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Ferro to My Watchlist.
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.