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

Federal-Mogul Corp. (NASDAQ:FDML) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1%.

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Federal-Mogul Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.34 in the quarter versus EPS of $0.34 in the year-earlier quarter.

Revenue: Decreased 3.68% to $1.7 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Federal-Mogul Corp. reported adjusted EPS loss of $0.34 per share. By that measure, the company missed the mean analyst estimate of $-0.30. It missed the average revenue estimate of $1.74 billion.

Quoting Management: “We are coming out of a fourth quarter 2012 earnings trough with improved operating performance in the first quarter 2013. We now have the majority of our operations running at a more balanced load and we have further opportunities through restructuring plans. Our Q1 operating results show the benefit of our strong drive for operating efficiency, in spite of continued European headwinds,” said Rainer Jueckstock, co-CEO Federal-Mogul and CEO Powertrain Segment.

Key Stats (on next page)…

Revenue increased 6.59% from $1.59 billion in the previous quarter. EPS increased to $-0.34 in the quarter versus EPS of $-0.42 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.30 to a loss $0.17. For the current year, the average estimate has moved down from a profit of $0.92 to a loss of $0.44 over the last ninety days.

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