Ferro Earnings: Here’s Why the Stock is Up Now

Ferro Corp. (NYSE:FOE) delivered a profit and beat Wall Street’s expectations, BUT 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 down 0.43%.

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Ferro Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 150% to $0.1 in the quarter versus EPS of $0.04 in the year-earlier quarter.

Revenue: Decreased 10.38% to $418 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ferro Corp. reported adjusted EPS income of $0.1 per share. By that measure, the company beat the mean analyst estimate of $0.05. It missed the average revenue estimate of $439.68 million.

Quoting Management: Commenting on the results, Peter Thomas, President and Chief Executive Officer, said, “We are making substantial progress on our value creation strategy, resulting in a strong start to the year with adjusted earnings per share of $0.10 for the quarter. All of our businesses performed ahead of plan in the quarter, with sequential value added sales increasing by 7.5% and gross profit improving by 38% to 20.5% of value-added sales. While European economic conditions continue to be weak, our businesses in the region are beginning to stabilize, partially due to increases in our exports to growth markets and the strong positions we have in automotive applications and glass systems which have allowed us to achieve sales growth exceeding the industry averages for the region. Our strategy of exporting from Europe into higher growth geographies and focusing commercial operations on attractive niche applications to offset the weak European economy is succeeding.”

Key Stats (on next page)…

Revenue increased 2.98% from $405.9 million in the previous quarter. EPS increased to $0.1 in the quarter versus EPS of $-0.07 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 profit of $0.07 to a profit $0.1. For the current year, the average estimate has moved up from a profit of $0.24 to a profit of $0.3 over the last ninety days.

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