The Gory Details on Hercules Offshore's Double Fumble

Seth Jayson, The Motley Fool
Updated

Hercules Offshore (NAS: HERO) reported earnings on July 31. Here are the numbers you need to know.

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

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


Margins grew across the board.

Revenue details
 Hercules Offshore reported revenue of $211.5 million. The 12 analysts polled by S&P Capital IQ expected revenue of $223.4 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $179.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

EPS details
 EPS came in at $0.01. The 20 earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. Non-GAAP EPS were $0.01 for Q2 against -$0.12 per share for the prior-year quarter. GAAP EPS were -$0.17 for Q2 compared to -$0.35 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

Margin details
 For the quarter, gross margin was 43.8%, much better than the prior-year quarter. Operating margin was 15.7%, much better than the prior-year quarter. Net margin was -12.9%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $240.8 million. On the bottom line, the average EPS estimate is $0.09.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,546 members out of 1,611 rating the stock outperform, and 65 members rating it underperform. Among 331 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 319 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 $9.09.

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The article The Gory Details on Hercules Offshore's Double Fumble 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. The Motley Fool has no position in any of the stocks mentioned. 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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