Foster Wheeler
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Foster Wheeler whiffed on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share increased significantly.
Margins grew across the board.
Revenue details
Foster Wheeler notched revenue of $803.2 million. The 10 analysts polled by S&P Capital IQ expected to see sales of $1.07 billion on the same basis. GAAP reported sales were 29% lower than the prior-year quarter's $1.13 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.56. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.44 per share. GAAP EPS of $0.54 for Q3 were 74% higher than the prior-year quarter's $0.31 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 19.2%, 720 basis points better than the prior-year quarter. Operating margin was 9.5%, 480 basis points better than the prior-year quarter. Net margin was 7.2%, 390 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.12 billion. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $4.09 billion. The average EPS estimate is $1.65.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,637 members out of 1,687 rating the stock outperform, and 50 members rating it underperform. Among 376 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 370 give Foster Wheeler a green thumbs-up, and six 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 $28.50.
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