The 10-second takeaway
For the quarter ended March 31 (Q1), Foster Wheeler missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped significantly. GAAP earnings per share contracted significantly.
Margins dropped across the board.
Foster Wheeler logged revenue of $796.3 million. The 10 analysts polled by S&P Capital IQ expected sales of $833.2 million on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $933.1 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 $0.14. The eight earnings estimates compiled by S&P Capital IQ averaged $0.18 per share. Non-GAAP EPS of $0.14 for Q1 were 65% lower than the prior-year quarter's $0.40 per share. GAAP EPS of $0.12 for Q1 were 68% lower than the prior-year quarter's $0.38 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 14.5%, 40 basis points worse than the prior-year quarter. Operating margin was 3.1%, 220 basis points worse than the prior-year quarter. Net margin was 1.6%, 280 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $916.9 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $3.58 billion. The average EPS estimate is $1.43.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,633 members out of 1,683 rating the stock outperform, and 50 members rating it underperform. Among 335 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 325 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 $26.91.
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