The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Harsco met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and earnings per share dropped.
Gross margins shrank, operating margins increased, and net margins contracted.
Harsco recorded revenue of $792.7 million. The seven analysts polled by S&P Capital IQ expected net sales of $799.5 million. Sales were 4.7% higher than the prior-year quarter's $757.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.36. The eight earnings estimates compiled by S&P Capital IQ predicted $0.30 per share on the same basis. GAAP EPS were -$1.14 for Q4 versus -$0.64 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 21.6%, 20 basis points worse than the prior-year quarter. Operating margin was -7.1%, 30 basis points better than the prior-year quarter. Net margin was -11.7%, 490 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $766.0 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $3.32 billion. The average EPS estimate is $1.62.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 279 members out of 289 rating the stock outperform, and 10 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 give Harsco a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Harsco is hold, with an average price target of $27.80.
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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. 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.