Ferro Goes Negative
Ferro (NYS: FOE) reported earnings on July 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Ferro missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Ferro booked revenue of $481.5 million. The five analysts polled by S&P Capital IQ foresaw sales of $507.8 million on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $594.0 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 $0.05. The seven earnings estimates compiled by S&P Capital IQ averaged $0.08 per share. GAAP EPS were -$0.03 for Q2 compared to $0.22 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 18.2%, 130 basis points worse than the prior-year quarter. Operating margin was 2.7%, 460 basis points worse than the prior-year quarter. Net margin was -0.6%, 390 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $509.3 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $1.97 billion. The average EPS estimate is $0.39.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 143 members out of 159 rating the stock outperform, and 16 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Ferro a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ferro is outperform, with an average price target of $7.13.
Over the decades, small-cap stocks, like Ferro have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Ferro to My Watchlist.
The article Ferro Goes Negative originally appeared on Fool.com.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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.