What Does Wall Street See for Horsehead Holding's Q2?

Horsehead Holding (Nasdaq: ZINC  ) is expected to report Q2 earnings on Aug. 6. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Horsehead Holding's revenues will increase 29.4% and EPS will shrink -175.0%.

The average estimate for revenue is $124.0 million. On the bottom line, the average EPS estimate is $0.06.

Revenue details
Last quarter, Horsehead Holding reported revenue of $111.4 million. GAAP reported sales were 2.0% higher than the prior-year quarter's $109.2 million.

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

EPS details
Last quarter, EPS came in at -$0.19. GAAP EPS were -$0.19 for Q1 versus $0.33 per share for the prior-year quarter.

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

Recent performance
For the preceding quarter, gross margin was 1.0%, 1,930 basis points worse than the prior-year quarter. Operating margin was -9.7%, 2,040 basis points worse than the prior-year quarter. Net margin was -7.6%, 2,110 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $493.8 million. The average EPS estimate is -$0.02.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 720 members out of 737 rating the stock outperform, and 17 members rating it underperform. Among 198 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 196 give Horsehead Holding a green thumbs-up, and two 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 $14.75.

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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 recommend Horsehead Holding. 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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