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Will These Numbers from Hercules Offshore Be Good Enough for You?

By Seth Jayson – Updated Apr 7, 2017 at 12:16PM

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Checking expectations

Hercules Offshore (Nasdaq: HERO) is expected to report Q3 earnings on Oct. 25. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Hercules Offshore's revenues will grow 12.6% and EPS will remain in the red.

The average estimate for revenue is $183.6 million. On the bottom line, the average EPS estimate is -$0.09.

Revenue details
Last quarter, Hercules Offshore reported revenue of $179.0 million. GAAP reported sales were 5.1% higher than the prior-year quarter's $170.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$0.12. GAAP EPS were -$0.35 for Q2 versus -$0.18 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 32.3%, 50 basis points worse than the prior-year quarter. Operating margin was 5.0%, 730 basis points better than the prior-year quarter. Net margin was -30.8%, 1,700 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $703.1 million. The average EPS estimate is -$0.49.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,562 members out of 1,628 rating the stock outperform, and 66 members rating it underperform. Among 360 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 350 give Hercules Offshore a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hercules Offshore is outperform, with an average price target of $6.22.

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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 has no positions in the stocks mentioned above. 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.

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