Hercules Offshore Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

Hercules Offshore (NAS: HERO) reported earnings on July 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Hercules Offshore beat expectations on revenue and missed expectations on earnings per share.

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


Gross margins contracted, operating margins improved, and net margins shrank.

Revenue details
Hercules Offshore logged revenue of $179.0 million. The 11 analysts polled by S&P Capital IQ wanted to see sales of $175.3 million on the same basis. GAAP reported sales were 5.1% higher than the prior-year quarter's $170.2 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 -$0.12. The 17 earnings estimates compiled by S&P Capital IQ averaged -$0.10 per share. GAAP EPS were -$0.35 for Q2 against -$0.18 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 32.3%, 50 basis points worse than the prior-year quarter. Operating margin was 5.0%, 730 basis points better than the prior-year quarter. Net margin was -30.8%, 1,700 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $189.6 million. On the bottom line, the average EPS estimate is -$0.07.

Next year's average estimate for revenue is $708.2 million. The average EPS estimate is -$0.41.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,573 members out of 1,640 rating the stock outperform, and 67 members rating it underperform. Among 323 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 312 give Hercules Offshore a green thumbs-up, and 11 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 $6.22.

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The article Hercules Offshore Increases Sales but Misses Estimates on Earnings 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 has no positions in the stocks mentioned above. 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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