Federal-Mogul Beats on EPS but GAAP Results Lag
Federal-Mogul (NAS: FDML) reported earnings on Feb. 28. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Federal-Mogul missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped to a loss.
Gross margins dropped, operating margins expanded, net margins contracted.
Federal-Mogul reported revenue of $1.65 billion. The two analysts polled by S&P Capital IQ expected a top line of $1.75 billion on the same basis. GAAP reported sales were 4.2% higher than the prior-year quarter's $1.59 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.51. The two earnings estimates compiled by S&P Capital IQ predicted $0.44 per share on the same basis. GAAP EPS were -$2.42 for Q4 against $0.45 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 14.9%, 30 basis points worse than the prior-year quarter. Operating margin was 4.1%, 30 basis points better than the prior-year quarter. Net margin was -14.4%, 1,720 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.82 billion. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $7.42 billion. The average EPS estimate is $2.13.
The stock has a two-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 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 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 $19.00.
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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.
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