The 10-second takeaway
For the quarter ended June 30 (Q2), Harsco missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.
Gross margin expanded, but operating margin shrank and net margin shrank.
Harsco logged revenue of $770.6 million. The six analysts polled by S&P Capital IQ expected a top line of $816.7 million on the same basis. GAAP-reported sales were 12% lower than the prior-year quarter's $875.1 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 $0.43. The seven earnings estimates compiled by S&P Capital IQ forecast $0.35 per share. GAAP EPS of $0.16 for Q2 were 65% lower than the prior-year quarter's $0.46 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.1%, 30 basis points better than the prior-year quarter. Operating margin was 4.5%, 290 basis points worse than the prior-year quarter. Net margin was 1.6%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $831.4 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $3.2 billion. The average EPS estimate is $1.32.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 277 members rating the stock outperform and 10 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 62 give Harsco 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 Harsco is outperform, with an average price target of $27.00.
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