The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Ferro missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Ferro reported revenue of $414.8 million. The six analysts polled by S&P Capital IQ predicted revenue of $449.4 million on the same basis. GAAP reported sales were 24% lower than the prior-year quarter's $546.1 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 -$0.02. The five earnings estimates compiled by S&P Capital IQ forecast -$0.03 per share. GAAP EPS were -$3.66 for Q3 compared to $0.21 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 15.0%, 400 basis points worse than the prior-year quarter. Operating margin was -0.7%, 780 basis points worse than the prior-year quarter. Net margin was -76.2%, 7,950 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $431.7 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $1.84 billion. The average EPS estimate is $0.08.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 140 members out of 158 rating the stock outperform, and 18 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Ferro 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 Ferro is outperform, with an average price target of $5.23.
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