Helix Energy Solutions Group Goes Red

Helix Energy Solutions Group (NYSE: HLX  ) reported earnings on Feb. 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Helix Energy Solutions Group whiffed on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share shrank to a loss.

Margins dropped across the board.

Revenue details
Helix Energy Solutions Group recorded revenue of $201.7 million. The four analysts polled by S&P Capital IQ predicted net sales of $344.5 million on the same basis. GAAP reported sales were 49% lower than the prior-year quarter's $396.2 million.

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

EPS details
EPS came in at $0.23. The five earnings estimates compiled by S&P Capital IQ forecast $0.33 per share. Non-GAAP EPS of $0.23 for Q4 were 65% lower than the prior-year quarter's $0.66 per share. GAAP EPS were -$1.64 for Q4 compared to $0.16 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 -54.0%, 8,780 basis points worse than the prior-year quarter. Operating margin was -66.7%, 6,560 basis points worse than the prior-year quarter. Net margin was -85.1%, 8,930 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $287.1 million. On the bottom line, the average EPS estimate is $0.29.

Next year's average estimate for revenue is $969.4 million. The average EPS estimate is $1.33.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 915 members out of 953 rating the stock outperform, and 38 members rating it underperform. Among 250 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 243 give Helix Energy Solutions Group 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 Helix Energy Solutions Group is outperform, with an average price target of $23.40.

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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. TMFDisclosureHere

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9/29/2016 2:40 PM
HLX $7.95 Up +0.20 +2.58%
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