There were some solid positives in Federal-Mogul's (NASDAQ:FDML) first quarter, as the company's Powertrain business handily outgrew the light vehicle markets in North America and Europe and the company successfully refinanced some large outstanding debt balances. There's more work to do on margins, though, and the company is facing increasingly difficult comps, higher interest expense, and integration expenses from three recent acquisitions. Federal-Mogul still looks undervalued today, but that's not exactly a consensus opinion and the company's high debt level increases the overall risk.
Q1 Comes Up Short
Federal-Mogul reported revenue growth of 7% for the first quarter, with the total result coming in about 2% below expectations. The company's Powertrain business was stronger than expected, growing...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|