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General Cable Goes Negative

Wednesday - 5/1/2013, 2:00am  ET

General Cable reported earnings on April 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 29 (Q1), General Cable missed estimates on revenues and missed estimates on earnings per share.

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

Gross margins were steady, operating margins dropped, net margins contracted.

Revenue details
General Cable booked revenue of $1.53 billion. The five analysts polled by S&P Capital IQ predicted revenue of $1.58 billion on the same basis. GAAP reported sales were 7.0% higher than the prior-year quarter's $1.43 billion.

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 $0.23. The six earnings estimates compiled by S&P Capital IQ anticipated $0.25 per share. Non-GAAP EPS of $0.23 for Q1 were 52% lower than the prior-year quarter's $0.48 per share. GAAP EPS were -$0.94 for Q1 against $0.45 per share for the prior-year quarter.

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 10.1%, much about the same as the prior-year quarter. Operating margin was 2.1%, 140 basis points worse than the prior-year quarter. Net margin was -3.0%, 460 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.75 billion. On the bottom line, the average EPS estimate is $0.78.

Next year's average estimate for revenue is $6.88 billion. The average EPS estimate is $2.66.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 608 members out of 635 rating the stock outperform, and 27 members rating it underperform. Among 144 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 139 give General Cable a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on General Cable is buy, with an average price target of $38.90.

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This article was originally published as General Cable Goes Negativeon Fool.com

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