The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Hecla Mining beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share contracted to zero.
Margins dropped across the board.
Hecla Mining notched revenue of $81.9 million. The four analysts polled by S&P Capital IQ anticipated a top line of $77.4 million on the same basis. GAAP reported sales were 32% lower than the prior-year quarter's $120.5 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 $0.01. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.04 per share. GAAP EPS dropped to zero from the prior-year quarter's $0.19.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 59.7%, 580 basis points worse than the prior-year quarter. Operating margin was 16.8%, 5,740 basis points worse than the prior-year quarter. Net margin was -1.1%, 4,750 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $87.9 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $327.4 million. The average EPS estimate is $0.16.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,272 members out of 1,336 rating the stock outperform, and 64 members rating it underperform. Among 249 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 230 give Hecla Mining a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hecla Mining is hold, with an average price target of $6.02.
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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 Hecla Mining Company. 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.