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The Gory Details on Heckmann's Double Fumble

By Seth Jayson – Updated Apr 10, 2017 at 1:20PM

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Just the facts, Fool.

Heckmann (NYSE: HEK) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Heckmann missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. GAAP loss per share grew.

Gross margins grew, operating margins dropped, net margins dropped.

Revenue details
Heckmann recorded revenue of $159.5 million. The eight analysts polled by S&P Capital IQ foresaw revenue of $167.1 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $55.0 million.

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

EPS details
EPS came in at -$0.05. The eight earnings estimates compiled by S&P Capital IQ anticipated -$0.01 per share. GAAP EPS were -$0.05 for Q1 versus -$0.03 per share for the prior-year quarter.

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

Margin details
For the quarter, gross margin was 13.5%, 80 basis points better than the prior-year quarter. Operating margin was -2.4%, 10 basis points worse than the prior-year quarter. Net margin was -7.9%, 90 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $193.6 million. On the bottom line, the average EPS estimate is $0.02.

Next year's average estimate for revenue is $765.6 million. The average EPS estimate is $0.04.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 542 members out of 559 rating the stock outperform, and 17 members rating it underperform. Among 118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 112 give Heckmann a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Heckmann is hold, with an average price target of $5.00.

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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 Heckmann and has the following options: Long Jan 2014 $4 Calls on Heckmann and Short Jan 2014 $3 Puts on Heckmann. 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.

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