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L.B. Foster (FSTR) Q3 Earnings Miss Estimates, Revenues Beat
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L.B. Foster Company (FSTR - Free Report) logged third-quarter 2023 earnings of 5 cents per share compared with the year-ago quarter's loss of 20 cents. Earnings per share missed the Zacks Consensus Estimate of 26 cents.
The company recorded revenues of $145.3 million for the quarter, up around 12% year over year. Revenues surpassed the Zacks Consensus Estimate of $140.4 million. Revenues for the quarter include an unfavorable impact from the exit of the bridge grid deck product line associated with long-term contract changes in the Steel Products and Measurement segment.
New orders were $100.3 million in the reported quarter, down around 27% year over year.
L.B. Foster Company Price, Consensus and EPS Surprise
Sales from the Rail, Technologies, and Services segment rose around 12% year over year in the third quarter to $86.9 million. Adjusted organic net sales went up 9.3%.
Precast Concrete Products Segment sales were $38.6 million, up roughly 34% year over year. Organic growth was 24.2%. The acquisition of the VanHooseCo business contributed 9.7%.
Net sales from the Steel Products and Measurement Segment for the third quarter were $19.8 million, down around 17% year over year. The downside was driven by the divestiture of the Precision Measurement Products and Systems business and an adverse impact on sales related to the bridge grid deck product line, partly offset by organic growth of 9.6%.
Financials
L.B. Foster ended the quarter with cash and cash equivalents of around $3 million, down around 24% sequentially. Long-term debt was roughly $71.6 million, down roughly 20% sequentially.
Cash provided by operating activities was $18.6 million for the reported quarter.
Outlook
FSTR now sees adjusted EBITDA in the range of $29-$31 million for 2023, compared with the prior guidance of $28-$32 million. It now expects 2023 net sales in the band of $530-$540 million, compared with the earlier view of $520-$550 million.
Price Performance
L.B. Foster’s shares have rallied 62.8% in the past year compared with the industry’s 11.2% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
FSTR currently has a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Axalta Coating Systems Ltd. (AXTA - Free Report) and The Andersons Inc. (ANDE - Free Report) .
The consensus estimate for Carpenter Technology’s current fiscal year earnings is pegged at $3.57, indicating year-over-year growth of 213.2%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have surged 65% in the past year. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for Axalta Coating Systems’ current year has been revised upward by 8.2%. AXTA, carrying a Zacks Rank #1, beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 6.7%. The company’s shares have gained 3% in the past year. The company’s shares have gained 15% in the past year.
Andersons currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 8.6% upward over the past 60 days. Andersons beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.8%, on average. ANDE shares have rallied around 31% in a year.
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L.B. Foster (FSTR) Q3 Earnings Miss Estimates, Revenues Beat
L.B. Foster Company (FSTR - Free Report) logged third-quarter 2023 earnings of 5 cents per share compared with the year-ago quarter's loss of 20 cents. Earnings per share missed the Zacks Consensus Estimate of 26 cents.
The company recorded revenues of $145.3 million for the quarter, up around 12% year over year. Revenues surpassed the Zacks Consensus Estimate of $140.4 million. Revenues for the quarter include an unfavorable impact from the exit of the bridge grid deck product line associated with long-term contract changes in the Steel Products and Measurement segment.
New orders were $100.3 million in the reported quarter, down around 27% year over year.
L.B. Foster Company Price, Consensus and EPS Surprise
L.B. Foster Company price-consensus-eps-surprise-chart | L.B. Foster Company Quote
Segment Highlights
Sales from the Rail, Technologies, and Services segment rose around 12% year over year in the third quarter to $86.9 million. Adjusted organic net sales went up 9.3%.
Precast Concrete Products Segment sales were $38.6 million, up roughly 34% year over year. Organic growth was 24.2%. The acquisition of the VanHooseCo business contributed 9.7%.
Net sales from the Steel Products and Measurement Segment for the third quarter were $19.8 million, down around 17% year over year. The downside was driven by the divestiture of the Precision Measurement Products and Systems business and an adverse impact on sales related to the bridge grid deck product line, partly offset by organic growth of 9.6%.
Financials
L.B. Foster ended the quarter with cash and cash equivalents of around $3 million, down around 24% sequentially. Long-term debt was roughly $71.6 million, down roughly 20% sequentially.
Cash provided by operating activities was $18.6 million for the reported quarter.
Outlook
FSTR now sees adjusted EBITDA in the range of $29-$31 million for 2023, compared with the prior guidance of $28-$32 million. It now expects 2023 net sales in the band of $530-$540 million, compared with the earlier view of $520-$550 million.
Price Performance
L.B. Foster’s shares have rallied 62.8% in the past year compared with the industry’s 11.2% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
FSTR currently has a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Axalta Coating Systems Ltd. (AXTA - Free Report) and The Andersons Inc. (ANDE - Free Report) .
The consensus estimate for Carpenter Technology’s current fiscal year earnings is pegged at $3.57, indicating year-over-year growth of 213.2%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have surged 65% in the past year. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for Axalta Coating Systems’ current year has been revised upward by 8.2%. AXTA, carrying a Zacks Rank #1, beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 6.7%. The company’s shares have gained 3% in the past year. The company’s shares have gained 15% in the past year.
Andersons currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 8.6% upward over the past 60 days. Andersons beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.8%, on average. ANDE shares have rallied around 31% in a year.