Halcon Resources Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

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 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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