The 10-second takeaway
For the quarter ended June 16 (Q2), Heritage-Crystal Clean beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew significantly.
Margins shrank across the board.
Heritage-Crystal Clean recorded revenue of $62.3 million. The three analysts polled by S&P Capital IQ hoped for net sales of $55.4 million on the same basis. GAAP reported sales were 95% higher than the prior-year quarter's $32.0 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 $0.07. The three earnings estimates compiled by S&P Capital IQ predicted $0.09 per share. GAAP EPS of $0.07 for Q2 were 40% higher than the prior-year quarter's $0.05 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.6%, 600 basis points worse than the prior-year quarter. Operating margin was 3.6%, 20 basis points worse than the prior-year quarter. Net margin was 2.0%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $58.9 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $244.1 million. The average EPS estimate is $0.56.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 59 members out of 65 rating the stock outperform, and six members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Heritage-Crystal Clean 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 Heritage-Crystal Clean is outperform, with an average price target of $25.00.
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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.