The Gory Details on Hercules Offshore's Double Miss

Seth Jayson, The Motley Fool
Updated

Hercules Offshore (NAS: HERO) reported earnings on April 26. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue dropped and GAAP loss per share expanded.


Margins contracted across the board.

Revenue details
Hercules Offshore reported revenue of $143.3 million. The 13 analysts polled by S&P Capital IQ expected revenue of $146.9 million on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $159.4 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 -$0.28. The 18 earnings estimates compiled by S&P Capital IQ averaged -$0.25 per share. GAAP EPS were -$0.28 for Q1 against -$0.13 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 22.4%, 1,090 basis points worse than the prior-year quarter. Operating margin was -19.9%, 1,890 basis points worse than the prior-year quarter. Net margin was -26.8%, 1,790 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $179.2 million. On the bottom line, the average EPS estimate is -$0.08.

Next year's average estimate for revenue is $731.1 million. The average EPS estimate is -$0.35.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,579 members out of 1,651 rating the stock outperform, and 72 members rating it underperform. Among 386 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 374 give Hercules Offshore a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hercules Offshore is outperform, with an average price target of $6.05.

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At the time thisarticle 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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