Horsehead Holding Goes Negative (ZINC)

Horsehead Holding Goes Negative

Horsehead Holding (Nasdaq: ZINC ) reported earnings on Feb. 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Horsehead Holding missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped to a loss.

Margins dropped across the board.

Revenue details
Horsehead Holding tallied revenue of $100.3 million. The four analysts polled by S&P Capital IQ wanted to see net sales of $105.9 million on the same basis. GAAP reported sales were 4.2% higher than the prior-year quarter's $96.3 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 -$0.29. The three earnings estimates compiled by S&P Capital IQ predicted $0.00 per share. GAAP EPS were -$0.29 for Q4 compared to $0.34 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 -13.1%, 3,230 basis points worse than the prior-year quarter. Operating margin was -26.4%, 3,550 basis points worse than the prior-year quarter. Net margin was -12.7%, 2,790 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $116.7 million. On the bottom line, the average EPS estimate is $0.08.

Next year's average estimate for revenue is $493.5 million. The average EPS estimate is $0.72.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 718 members out of 736 rating the stock outperform, and 18 members rating it underperform. Among 268 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 267 give Horsehead Holding a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Horsehead Holding is buy, with an average price target of $14.67.

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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Horsehead Holding. Motley Fool newsletter services have recommended buying shares of Horsehead Holding.

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