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L.B. Foster's (FSTR) Q3 Earnings and Revenues Improve Y/Y
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Premium railroads service provider L.B. Foster Company’s (FSTR - Free Report) third-quarter 2017 earnings improved on a year-over-year as well as sequential basis. However, the quarterly results failed to win investors’ confidence, as we notice that share price of the company dipped nearly 6.5% to $22.20 per share on Nov 8.
Earnings and Revenues
Quarterly adjusted earnings came in at 31 cents per share, up 6.7% sequentially. The company had reported break-even results in the year-ago quarter.
Net sales in the reported quarter came in at $131.5 million, up 14.7% year over year. The upside was driven by higher sales generated in the Construction, Tubular and Rail segments.
Sales of goods in the third quarter were $103.1 million, up 2.8% year over year. Sales of services surged a whopping 98.1% year over year to $28.4 million.
The company existed the reported quarter with a backlog of $189.6 million, up 31.8% year over year.
L.B. Foster Company Price, Consensus and EPS Surprise
Total cost of sales during the third quarter was $105.1 million, up 10.8% year over year. Gross profit margin in the quarter came in at 20.1%, expanding 280 basis points year over year. This upswing stemmed from wider segmental margins.
Selling and administrative expenses flared up 2.1% year over year to $20.2 million. Elevated expenses stemmed from rise in personnel-related expenses.
Interest expenses in the quarter came in at $2 million compared with $1.5 million incurred in the year-ago quarter. Rise in interest rates escalated interest expenses during the reported quarter.
Balance Sheet and Cash Flow
Exiting third-quarter 2017, the company had cash and cash equivalents worth $35 million, up 15.3% from the figure reported at the end of 2016. Long-term debt came in at $128.4 million compared to $149.2 million as of Dec 31, 2016.
In the first nine months of 2017, L.B. Foster generated cash worth $27.5 million, as against $11.9 million cash used in the year-ago period.
Outlook
L.B. Foster stated that improving end-market conditions (especially energy market) will drive its revenues and profitability in the quarters ahead. The company anticipates to generate revenues in the range of $135-$142 million in fourth-quarter 2017. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the upcoming quarter are anticipated to lie in the range of $9.5-$11.5 million.
Revenues for 2017 are estimated to lie in the band of $530-$537 million and EBITDA is projected in the $35-$37 million range.
Our Take
Over the last three months, L.B. Foster’s shares yielded a return of 18.4%, outperforming 2.5% growth recorded by the industry.
Companies like ArcelorMittal (MT - Free Report) , Nucor Corporation (NUE - Free Report) and Acerinox, S.A. (ANIOY - Free Report) are some other major stocks in the industry.
L.B. Foster intends to boost its competency on the back of new orders, solid backlog, greater operational efficacy and robust Construction businesses sales.
However, headwinds such as stiff industry rivalry, sudden input price inflation or a supply change challenge might affect the company’s near-term performance.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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L.B. Foster's (FSTR) Q3 Earnings and Revenues Improve Y/Y
Premium railroads service provider L.B. Foster Company’s (FSTR - Free Report) third-quarter 2017 earnings improved on a year-over-year as well as sequential basis. However, the quarterly results failed to win investors’ confidence, as we notice that share price of the company dipped nearly 6.5% to $22.20 per share on Nov 8.
Earnings and Revenues
Quarterly adjusted earnings came in at 31 cents per share, up 6.7% sequentially. The company had reported break-even results in the year-ago quarter.
Net sales in the reported quarter came in at $131.5 million, up 14.7% year over year. The upside was driven by higher sales generated in the Construction, Tubular and Rail segments.
Sales of goods in the third quarter were $103.1 million, up 2.8% year over year. Sales of services surged a whopping 98.1% year over year to $28.4 million.
The company existed the reported quarter with a backlog of $189.6 million, up 31.8% year over year.
L.B. Foster Company Price, Consensus and EPS Surprise
L.B. Foster Company Price, Consensus and EPS Surprise | L.B. Foster Company Quote
Costs and Margins
Total cost of sales during the third quarter was $105.1 million, up 10.8% year over year. Gross profit margin in the quarter came in at 20.1%, expanding 280 basis points year over year. This upswing stemmed from wider segmental margins.
Selling and administrative expenses flared up 2.1% year over year to $20.2 million. Elevated expenses stemmed from rise in personnel-related expenses.
Interest expenses in the quarter came in at $2 million compared with $1.5 million incurred in the year-ago quarter. Rise in interest rates escalated interest expenses during the reported quarter.
Balance Sheet and Cash Flow
Exiting third-quarter 2017, the company had cash and cash equivalents worth $35 million, up 15.3% from the figure reported at the end of 2016. Long-term debt came in at $128.4 million compared to $149.2 million as of Dec 31, 2016.
In the first nine months of 2017, L.B. Foster generated cash worth $27.5 million, as against $11.9 million cash used in the year-ago period.
Outlook
L.B. Foster stated that improving end-market conditions (especially energy market) will drive its revenues and profitability in the quarters ahead. The company anticipates to generate revenues in the range of $135-$142 million in fourth-quarter 2017. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the upcoming quarter are anticipated to lie in the range of $9.5-$11.5 million.
Revenues for 2017 are estimated to lie in the band of $530-$537 million and EBITDA is projected in the $35-$37 million range.
Our Take
Over the last three months, L.B. Foster’s shares yielded a return of 18.4%, outperforming 2.5% growth recorded by the industry.
Companies like ArcelorMittal (MT - Free Report) , Nucor Corporation (NUE - Free Report) and Acerinox, S.A. (ANIOY - Free Report) are some other major stocks in the industry.
L.B. Foster intends to boost its competency on the back of new orders, solid backlog, greater operational efficacy and robust Construction businesses sales.
However, headwinds such as stiff industry rivalry, sudden input price inflation or a supply change challenge might affect the company’s near-term performance.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>