The 10-second takeaway
For the quarter ended June 30 (Q2), Foster Wheeler whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share shrank significantly.
Gross margins increased, operating margins grew, and net margins shrank.
Foster Wheeler logged revenue of $943 million. The 11 analysts polled by S&P Capital IQ predicted a top line of $1.12 billion on the same basis. GAAP reported sales were 20% lower than the prior-year quarter's $1.18 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 $0.32. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.42 per share. GAAP EPS of $0.29 for Q2 were 44% lower than the prior-year quarter's $0.52 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 14.8%, 180 basis points better than the prior-year quarter. Operating margin was 5.6%, 10 basis points better than the prior-year quarter. Net margin was 3.3%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.17 billion. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $4.45 billion. The average EPS estimate is $1.80.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,647 members rating the stock outperform and 49 members rating it underperform. Among 357 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 347 give Foster Wheeler a green thumbs-up, and 10 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 $30.58.
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