Heckmann Misses on Both Revenue and Earnings

Seth Jayson, The Motley Fool
Updated

Heckmann (NYS: HEK) reported earnings on Nov. 9. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 30 (Q3), Heckmann 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 dropped.


Gross margins dropped, operating margins dropped, net margins increased.

Revenue details
 Heckmann recorded revenue of $93.1 million. The eight analysts polled by S&P Capital IQ predicted a top line of $95.1 million on the same basis. GAAP reported sales were 95% higher than the prior-year quarter's $47.8 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 -$0.06. The eight earnings estimates compiled by S&P Capital IQ forecast -$0.02 per share. GAAP EPS were -$0.06 for Q3 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 17.6%, 750 basis points worse than the prior-year quarter. Operating margin was 0.6%, 500 basis points worse than the prior-year quarter. Net margin was -10.0%, 3,410 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $106.1 million. On the bottom line, the average EPS estimate is -$0.01.

Next year's average estimate for revenue is $347.0 million. The average EPS estimate is $0.01.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 501 members out of 518 rating the stock outperform, and 17 members rating it underperform. Among 104 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 97 give Heckmann a green thumbs-up, and seven 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 $5.63.

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The article Heckmann Misses on Both Revenue and 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 owns shares of Heckmann and has the following options: long JAN 2014 $4.00 calls 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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