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Can Hecla Mining Beat These Numbers?

By Seth Jayson – Updated Apr 10, 2017 at 7:27AM

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Checking expectations

Hecla Mining (NYSE: HL) is expected to report Q1 earnings around May 7. 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 Hecla Mining's revenues will expand 0.9% and EPS will contract -50.0%.

The average estimate for revenue is $91.9 million. On the bottom line, the average EPS estimate is $0.03.

Revenue details
Last quarter, Hecla Mining reported revenue of $81.1 million. GAAP reported sales were 21% lower than the prior-year quarter's $102.9 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 $0.03. GAAP EPS contracted to zero from the prior-year quarter's $0.06.

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 57.2%, 340 basis points worse than the prior-year quarter. Operating margin was 18.9%, much worse than the prior-year quarter. Net margin was 0.9%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $518.7 million. The average EPS estimate is $0.22.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,260 members out of 1,326 rating the stock outperform, and 66 members rating it underperform. Among 164 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 141 give Hecla Mining a green thumbs-up, and 23 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hecla Mining is outperform, with an average price target of $6.33.

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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 Hargreaves Lansdown. 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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