Halcon Resources Increases Sales but Misses Estimates on Earnings

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Halcon Resources (NYS: HK) reported earnings on May 8. Here are the numbers you need to know.

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

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


Margins dropped across the board.

Revenue details
Halcon Resources reported revenue of $26.8 million. The three analysts polled by S&P Capital IQ predicted net sales of $27.9 million on the same basis. GAAP reported sales were 4.3% higher than the prior-year quarter's $25.8 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 -$0.04. The three earnings estimates compiled by S&P Capital IQ forecast $0.03 per share. GAAP EPS were -$0.50 for Q1 compared to -$0.38 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 61.9%, 10 basis points worse than the prior-year quarter. Operating margin was -54.4%, 2,150 basis points worse than the prior-year quarter. Net margin was -124.0%, 8,550 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $29.9 million. On the bottom line, the average EPS estimate is -$0.02.

Next year's average estimate for revenue is $178.1 million. The average EPS estimate is $0.09.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 267 members out of 287 rating the stock outperform, and 20 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give Halcon Resources a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Halcon Resources is buy, with an average price target of $13.75.

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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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