The 10-second takeaway
For the quarter ended March 23 (Q1), Heritage-Crystal Clean missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Heritage-Crystal Clean booked revenue of $60.0 million. The six analysts polled by S&P Capital IQ predicted revenue of $61.2 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $50.5 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 -$0.02. The six earnings estimates compiled by S&P Capital IQ averaged $0.03 per share. GAAP EPS were -$0.02 for Q1 against $0.02 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 12.9%, 330 basis points worse than the prior-year quarter. Operating margin was -1.2%, 250 basis points worse than the prior-year quarter. Net margin was -0.7%, 120 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $64.3 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $278.6 million. The average EPS estimate is $0.48.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 59 members out of 64 rating the stock outperform, and five members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Heritage-Crystal Clean a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Heritage-Crystal Clean is outperform, with an average price target of $19.50.
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