Foster Wheeler AG Earnings: Here’s Why Shares are Up Now

Foster Wheeler AG (NASDAQ:FWLT) 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 up 4.27%.

Foster Wheeler AG Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 68.75% to $0.54 in the quarter versus EPS of $0.32 in the year-earlier quarter.

Revenue: Decreased 8.44% to $863.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Foster Wheeler AG reported adjusted EPS income of $0.54 per share. By that measure, the company beat the mean analyst estimate of $0.34. It missed the average revenue estimate of $881.96 million.

Quoting Management: Foster Wheeler’s Chief Executive Officer, Kent Masters, said, “Our adjusted income from continuing operations in the second quarter of 2013 was 22% above the average quarter of 2012, due largely to the strong performance of our Global Engineering and Construction (E&C) Group, which reported a 29% increase in EBITDA and a 12% increase in scope revenues. The E&C Group also reported a broad range of very favorable performance metrics, including robust bookings, an improved EBITDA margin and a near-record level of backlog in scope revenue.”

Key Stats (on next page)…

Revenue increased 8.43% from $796.29 million in the previous quarter. EPS increased 285.71% from $0.14 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 $0.43 to a profit $0.42. For the current year, the average estimate has moved up from a profit of $1.39 to a profit of $1.4 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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

More Articles About:   , , , ,  

More from The Cheat Sheet