The 10-second takeaway
For the quarter ended March 31 (Q1), Horsehead Holding met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Horsehead Holding tallied revenue of $111.4 million. The four analysts polled by S&P Capital IQ predicted sales of $112.9 million on the same basis. 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 came in at -$0.19. The four earnings estimates compiled by S&P Capital IQ anticipated $0.09 per share. 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.
For the quarter, gross margin was -1.9%, 2,220 basis points worse than the prior-year quarter. Operating margin was -12.6%, 2,330 basis points worse than the prior-year quarter. Net margin was -7.6%, 2,110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $119.1 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $480.9 million. The average EPS estimate is $0.62.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 724 members out of 742 rating the stock outperform, and 18 members rating it underperform. Among 230 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 229 give Horsehead Holding 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 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 have recommended buying shares of 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.