Hecla Mining Meets on the Top Line, Misses Where It Counts

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Hecla Mining (NYS: HL) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Hecla Mining met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share grew.

Gross margins contracted, operating margins dropped, net margins expanded.

Revenue details
Hecla Mining reported revenue of $102.9 million. The three analysts polled by S&P Capital IQ hoped for revenue of $102.8 million on the same basis. GAAP reported sales were 23% lower than the prior-year quarter's $134.5 million.

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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 $0.06. The seven earnings estimates compiled by S&P Capital IQ averaged $0.07 per share. GAAP EPS were $0.06 for Q4 against -$0.05 per share for the prior-year quarter.

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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 60.6%, 530 basis points worse than the prior-year quarter. Operating margin was 32.6%, 650 basis points worse than the prior-year quarter. Net margin was 18.1%, 2,530 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $89.2 million. On the bottom line, the average EPS estimate is $0.11.

Next year's average estimate for revenue is $426.8 million. The average EPS estimate is $0.46.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,250 members out of 1,310 rating the stock outperform, and 60 members rating it underperform. Among 312 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 298 give Hecla Mining a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hecla Mining is hold, with an average price target of $8.16.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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