Federal-Mogul (Nasdaq: FDML) reported earnings on July 22. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Federal-Mogul beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share increased. GAAP earnings per share grew.
Margins grew across the board.
Revenue details
Federal-Mogul tallied revenue of $1.77 billion. The two analysts polled by S&P Capital IQ anticipated sales of $1.73 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 one earnings estimate compiled by S&P Capital IQ forecast $0.39 per share. Non-GAAP EPS of $0.56 for Q2 were 3.7% higher than the prior-year quarter's $0.54 per share. GAAP EPS were $0.57 for Q2 against -$0.60 per share for the prior-year quarter.
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 15.8%, 80 basis points better than the prior-year quarter. Operating margin was 4.7%, 70 basis points better than the prior-year quarter. Net margin was 3.2%, 670 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter's average estimate for revenue is $1.66 billion. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $6.75 billion. The average EPS estimate is $0.58.
Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 41 members out of 67 rating the stock outperform, and 26 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Federal-Mogul 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 Federal-Mogul is outperform, with an average price target of $13.00.
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