Furmanite Beats on Both Top and Bottom Lines

Furmanite (NYSE: FRM  ) reported earnings on March 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Furmanite beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share dropped significantly. GAAP earnings per share shrank significantly.

Margins shrank across the board.

Revenue details
Furmanite recorded revenue of $93.2 million. The two analysts polled by S&P Capital IQ foresaw a top line of $83.0 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $81.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.10. The two earnings estimates compiled by S&P Capital IQ forecast $0.03 per share. Non-GAAP EPS of $0.10 for Q4 were 70% lower than the prior-year quarter's $0.33 per share. GAAP EPS of $0.03 for Q4 were 90% lower than the prior-year quarter's $0.30 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.8%, 100 basis points worse than the prior-year quarter. Operating margin was 4.5%, 230 basis points worse than the prior-year quarter. Net margin was 1.1%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $79.9 million. On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $371.2 million. The average EPS estimate is $0.37.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Furmanite is outperform, with an average price target of $6.25.

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