Hecla Mining Co. Earnings Cheat Sheet: Rise in Profit

Hecla Mining Co. (NYSE:HL) reported its results for the third quarter. Hecla Mining is engaged in the discovery, acquisition, development, production and marketing of silver, gold, lead and zinc.

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Hecla Mining Earnings Cheat Sheet for the Third Quarter

Results: Net income for Hecla Mining Co. rose to $55.9 million (19 cents per share) vs. $19.8 million (6 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 4% to $120.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: HL reported adjusted net income of 13 cents per share. By that measure, the company fell short of mean estimate of 14 cents per share. It fell short of the average revenue estimate of $125.6 million.

Quoting Management: “Hecla’s financial position and asset base is the strongest it’s been in its history after a unique third quarter generating the highest net income and cash position, establishing a dividend, approving the #4 Shaft, initiating work to reopen three mines, and settling the Basin litigation,” said Hecla’s President and Chief Executive Officer, Phillips S. Baker, Jr. “From this quarter, we are poised to grow production 50% over the next five years.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 33% to $117.9 million in the second quarter. The figure rose 70.7% in the first quarter from the year earlier and climbed 52.7% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now fallen short of estimates in the last two quarters. In the second quarter, it missed expectations by 4 cents with net income of 11 cents versus a mean estimate of net income of 15 cents per share.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the fourth quarter is 13 cents per share, a drop from 18 cents. The average estimate for the fiscal year is 53 cents per share, down from 63 cents ninety days ago.

Competitors to Watch: Coeur d’Alene Mines Corp. (NYSE:CDE), Pan American Silver Corp. (NASDAQ:PAAS), Silver Wheaton Corp. (NYSE:SLW), Mines Management, Inc. (AMEX:MGN), Metalline Mining Company (AMEX:MMG), Great Panther Silver Ltd. (AMEX:GPR), Alexco Resource Corp. (AMEX:AXU), Silvercorp Metals Inc. (NYSE:SVM), Mag Silver Corp (AMEX:MVG), and First Majestic Silver Corp. (NYSE:FR).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)