Foster Wheeler Earnings: Everything You Must Know Now

Foster Wheeler AG (NASDAQ:FWLT) delivered a profit 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.

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Foster Wheeler AG Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 65% to $0.14 in the quarter versus EPS of $0.40 in the year-earlier quarter.

Revenue: Decreased 14.66% to $796.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Foster Wheeler AG reported adjusted EPS income of $0.14 per share. By that measure, the company missed the mean analyst estimate of $0.25. It missed the average revenue estimate of $862.4 million.

Quoting Management: Foster Wheeler’s Chief Executive Officer, Kent Masters, said, “Our net income was below the average quarter of 2012 due in part to the unfavorable impact of the mark-to-market losses and the impairment charge cited above. Further, as expected, both of our business groups generated lower EBITDA in the first quarter of 2013 than in the average quarter of 2012. However, we do not view first-quarter 2013 earnings per share or EBITDA as a run rate for the remainder of the year.”

Key Stats (on next page)…

Revenue increased 8.3% from $735.28 million in the previous quarter. EPS decreased 48.15% from $0.27 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 $0.50 to a profit $0.34. For the current year, the average estimate has moved down from a profit of $2.07 to a profit of $1.51 over the last ninety days.

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