The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Furmanite beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share dropped significantly. GAAP earnings per share shrank significantly.
Margins shrank across the board.
Furmanite recorded revenue of $93.2 million. The two analysts polled by S&P Capital IQ foresaw a top line of $83.0 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $81.8 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 $0.10. The two earnings estimates compiled by S&P Capital IQ forecast $0.03 per share. Non-GAAP EPS of $0.10 for Q4 were 70% lower than the prior-year quarter's $0.33 per share. GAAP EPS of $0.03 for Q4 were 90% lower than the prior-year quarter's $0.30 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 28.8%, 100 basis points worse than the prior-year quarter. Operating margin was 4.5%, 230 basis points worse than the prior-year quarter. Net margin was 1.1%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $79.9 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $371.2 million. The average EPS estimate is $0.37.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Furmanite is outperform, with an average price target of $6.25.
If you're interested in companies like Furmanite, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street – and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.
- Add Furmanite 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. The Motley Fool has no position in any of the stocks mentioned. 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.