What’s tricky about Forterra Inc. (NASDAQ:FRTA)?


At the end of the most recent quarter, Forterra Inc. (NASDAQ:FRTA)‘s balance sheet showed total assets worth $1.82B and debt of 10.5M%. Compared to the past period, the newly reported debt increased/decreased by growing.

Forterra Inc.’s total liabilities exiting the latest quarter stood at $1.69B.

On May 15, 2017, Forterra reported net sales of $338.3 million for the first quarter of 2017, compared to $187 million in the prior year quarter. This sales growth was “attributable to the impact of acquisitions that increased net sales by $163 million.” In addition, Forterra reported a consolidated net loss of $22.5 million, or $0.35 loss per share. Forterra’s Chief Executive Officer commented that the company’s “earnings results for the quarter were impacted by a number of factors that unfortunately will persist through the second quarter of 2017.” Following this news, shares of Forterra fell more than 24% on May 15, 2017.

Let’s look into the technical of the stock

The Barchart Technical Opinion rating is a 80% Sell with a Strengthening short term outlook on maintaining the current direction. Longer term, the trend strength is Maximum. Long term indicators fully support a continuation of the trend.

The assets that the company listed at the end of the most recent quarter included cash balance of 40.02M%. Net operating cash from the latest quarter was $46.05M, leading to free cash flow of $18.81M. Compared to the past period, net change in case came to $3.81M.

The cash that Forterra Inc. generated in the latest quarter stemmed from sales of 354.11M%, which increased 0.4%% from a year-ago period. Sales in the latest quarter grew at a rate faster/slower than the past quarter by decline%.

It cost Forterra Inc. some $293.75M to generate the sales of 354.11M% reported in the latest quarter, with that being the cost of sales. After factoring in the cost of sales in the income calculations, Forterra Inc. emerged with gross income of $60.36M.

After also taking into account other operating expenses, the company ended up with a net income figure that when it divided with the number of outstanding shares it ended up with EPS (earnings per share) of $(0.81). For perspective on how Forterra Inc. arrived at the EPS figure, investors should know that the company finished the latest quarter with diluted outstanding shares of 60.16M.

What?s in the offing in terms of EPS for the next quarter? Wall Street analysts on the average say investors should expect from Forterra Inc. EPS of $0.40 in the next quarter.

In addition to predicting the next quarter’s EPS, analysts have also weighed in on the stock of Forterra Inc. regarding whether investors should view it as a BUY, SELL or HOLD. Some 9 analysts have commented on the stock so far, giving it an average analyst recommendation of Overweight.