Heckmann Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Heckmann (NYS: HEK) reported earnings on March 11. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), Heckmann beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share increased.


Gross margins shrank, operating margins grew, net margins expanded.

Revenue details
 Heckmann booked revenue of $113.2 million. The seven analysts polled by S&P Capital IQ predicted revenue of $101.7 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $51.7 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 $0.03. The seven earnings estimates compiled by S&P Capital IQ anticipated -$0.03 per share. GAAP EPS were $0.03 for Q4 compared to -$0.02 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 6.9%, 630 basis points worse than the prior-year quarter. Operating margin was -15.6%, 210 basis points better than the prior-year quarter. Net margin was 4.4%, 920 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $166.7 million. On the bottom line, the average EPS estimate is $0.03.

Next year's average estimate for revenue is $781.5 million. The average EPS estimate is $0.21.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 513 members out of 529 rating the stock outperform, and 16 members rating it underperform. Among 116 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 110 give Heckmann a green thumbs-up, and six 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 $5.29.

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The article Heckmann Beats on Both Top and Bottom Lines 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 Calls on Heckmann and Short Jan 2014 $3 Puts 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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