Federal-Mogul Misses Where it Counts

Seth Jayson, The Motley Fool
Updated

Federal-Mogul (NAS: FDML) reported earnings on Feb. 27. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), Federal-Mogul beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share dropped to a loss. GAAP loss per share dropped.


Gross margins dropped, operating margins contracted, net margins expanded.

Revenue details
 Federal-Mogul notched revenue of $1.60 billion. The two analysts polled by S&P Capital IQ predicted net sales of $1.55 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 -$0.42. The two earnings estimates compiled by S&P Capital IQ averaged $0.07 per share. Non-GAAP EPS were -$0.42 for Q4 against $0.51 per share for the prior-year quarter. GAAP EPS were -$0.81 for Q4 against -$2.44 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 10.5%, 470 basis points worse than the prior-year quarter. Operating margin was -1.1%, 550 basis points worse than the prior-year quarter. Net margin was -5.0%, 950 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $1.75 billion. On the bottom line, the average EPS estimate is $0.24.

Next year's average estimate for revenue is $6.93 billion. The average EPS estimate is $0.72.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 43 members out of 66 rating the stock outperform, and 23 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Federal-Mogul a green thumbs-up, and three 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 $10.50.

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The article Federal-Mogul Misses Where it Counts 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. 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.

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