Federal-Mogul Earnings: Here’s Why Shares are Up Now

Federal-Mogul Corp. (NASDAQ:FDML) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.72%.

Federal-Mogul Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 5.56% to $0.57 in the quarter versus EPS of $0.54 in the year-earlier quarter.

Revenue: Rose 3.99% to $1.77 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Federal-Mogul Corp. reported adjusted EPS income of $0.57 per share. By that measure, the company beat the mean analyst estimate of $0.39. It beat the average revenue estimate of $1.73 billion.

Quoting Management: “Federal-Mogul`s second quarter results show the benefit of cost reductions and restructuring actions implemented to eliminate loss-making units and improve overall operating leverage,” said Rainer Jueckstock, Federal-Mogul co-CEO and CEO Powertrain Segment. “The cash flow in Q2 2013 is also an important sign of improved working capital stability. While the results are encouraging, we are continuing to implement restructuring actions to raise capacity utilization and improve operating performance,” he said.

Key Stats (on next page)…

Revenue increased 4.3% from $1.7 billion in the previous quarter. EPS increased 137.5% from $0.24 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.15 to a profit $0.13. For the current year, the average estimate has moved up from a loss of $0.44 to a profit of $0.75 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)