Hecla Mining Earnings: Profit Falls with Revenue Decline

Hecla Mining Co. (NYSE:HL) posted a decrease in profit as revenue declined. 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 Second Quarter

Results: Net income for Hecla Mining Co. fell to $2.5 million (one cent per share) vs. $33.3 million (11 cents per share) a year earlier. This is a decline of 92.4% from the year-earlier quarter.

Revenue: Fell 43.1% to $67 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Hecla Mining Co. fell short of the mean analyst estimate of 6 cents per share. It fell short of the average revenue estimate of $85.1 million.

Quoting Management: “Hecla is delivering cash flow today and investing in growth for the future. Despite only Greens Creek operating currently, Hecla generates enough cash flow and has a strong enough balance sheet to invest record amounts in capital, exploration and pre-development that we believe will provide long-lived production – 15 plus years at Greens Creek and 30 plus years at Lucky Friday – and 50% production growth over the next five years,” said Hecla’s President and Chief Executive Officer Phillips S. Baker, Jr.

Key Stats:

The company has missed analyst estiamtes for four quarters in a row. It fell short by one cent in the first quarter, by 2 cents in the fourth quarter of the last fiscal year, and by 4 cents in the third quarter of the last fiscal year.

Revenue has fallen for the past three quarters. In the first quarter, revenue declined 33.2% to $91.2 million while the figure fell 23.5% in the fourth quarter of the last fiscal year from the year earlier.

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 third quarter is 6 cents per share, a drop from 9 cents. The average estimate for the fiscal year is 30 cents per share, down from 38 cents ninety days ago.

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

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