Hecla Mining Co. Earnings: Here’s Why Investors are Selling Shares Now

Hecla Mining Co. (NYSE:HL) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3%.

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Hecla Mining Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 83.33% to $0.01 in the quarter versus EPS of $0.06 in the year-earlier quarter.

Revenue: Decreased 16.07% to $76.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Hecla Mining Co. reported adjusted EPS income of $0.01 per share. By that measure, the company missed the mean analyst estimate of $0.04. It missed the average revenue estimate of $94.78 million.

Quoting Management: “During the first quarter we recommenced production at the Lucky Friday mine, after a year of rehabilitation and enhancement, and expect the mine to produce more than 2 million ounces of silver this year and 3 million ounces of silver in 2014,” said Phillips S. Baker, Jr., President and Chief Executive Officer. “My ongoing thanks to the team at the Lucky Friday who completed this work safely and efficiently, and the team at Greens Creek whose effort generates the cash flow that’s carrying the Company through this period.”

Key Stats (on next page)…

Revenue decreased 5.67% from $81.1 million in the previous quarter. EPS decreased 66.67% from $0.03 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.10 to a profit $0.05. For the current year, the average estimate has moved down from a profit of $0.39 to a profit of $0.24 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)