The Gory Details on Heckmann's Double Fumble

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Heckmann (NYS: HEK) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Heckmann missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. GAAP loss per share grew.


Gross margins grew, operating margins dropped, net margins dropped.

Revenue details
Heckmann recorded revenue of $159.5 million. The eight analysts polled by S&P Capital IQ foresaw revenue of $167.1 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $55.0 million.

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 -$0.05. The eight earnings estimates compiled by S&P Capital IQ anticipated -$0.01 per share. GAAP EPS were -$0.05 for Q1 versus -$0.03 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 13.5%, 80 basis points better than the prior-year quarter. Operating margin was -2.4%, 10 basis points worse than the prior-year quarter. Net margin was -7.9%, 90 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $193.6 million. On the bottom line, the average EPS estimate is $0.02.

Next year's average estimate for revenue is $765.6 million. The average EPS estimate is $0.04.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 542 members out of 559 rating the stock outperform, and 17 members rating it underperform. Among 118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 112 give Heckmann a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Heckmann is hold, with an average price target of $5.00.

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The article The Gory Details on Heckmann's Double Fumble originally appeared on Fool.com.

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. The Motley Fool owns shares of Heckmann and has the following options: Long Jan 2014 $4 Calls on Heckmann and Short Jan 2014 $3 Puts on Heckmann. 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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