The 10-second takeaway
For the quarter ended June 30 (Q2), Horsehead Holding missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share dropped.
Margins expanded across the board.
Horsehead Holding tallied revenue of $117.5 million. The five analysts polled by S&P Capital IQ predicted net sales of $121.6 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $95.8 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 -$0.04. The five earnings estimates compiled by S&P Capital IQ averaged $0.04 per share. GAAP EPS were -$0.04 for Q2 versus -$0.08 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 8.9%, 170 basis points better than the prior-year quarter. Operating margin was -0.9%, 260 basis points better than the prior-year quarter. Net margin was -1.4%, 240 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $120.9 million. On the bottom line, the average EPS estimate is $0.02.
Next year's average estimate for revenue is $483.0 million. The average EPS estimate is -$0.24.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 719 members out of 736 rating the stock outperform, and 17 members rating it underperform. Among 203 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 201 give Horsehead Holding 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 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 recommend 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.