Foster Wheeler Hammers Estimates, Upbeat Outlook, Shares Up Sharply

Foster Wheeler reported its fourth straight quarter of record earnings, as Q1 net income jumped nearly eightfold to $114.8m, or $1.60/share, beating analysts' average estimate of $0.64/share. Revenues rose 78% to $1.15b. Its shares soared 20% on the earnings announcement to $87.75 during normal trading. "A big part of the jump today is the market is finally recognizing the sustainability of the operating momentum that Foster Wheeler has been displaying for the past three quarters," said an Imperial Capital analyst in a phone interview with Bloomberg. In a press release, Foster Wheeler commented: "The fundamentals supporting the markets served by the Company's Global Engineering and Construction Group and Global Power Group remain very robust, with strong global economic growth continuing to drive investment in new and existing oil and gas, refinery, petrochemical and power facilities." Both groups increased their manpower in Q1 and plan to continue increasing capacity.

Sources: Press release, Bloomberg
Commentary: Foster Wheeler, Comverge: Two Clean Energy Stocks Worth Noting • The Long Case for Foster Wheeler: 'White Hot a Year Ago, White Hot Today' • Jim Cramer's Take on Foster Wheeler
Stocks/ETFs to watch: Foster Wheeler (FWLT). Competitors: Fluor Corporation (FLR), Halliburton (HAL)

Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.