Hecla Mining Earnings: Revenue and Profit Drop Hard

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 First Quarter

Results: Net income for Hecla Mining Co. fell to $12.4 million (4 cents per share) vs. $43.4 million (15 cents per share) a year earlier. This is a decline of 71.3% from the year-earlier quarter.

Revenue: Fell 33.2% to $91.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Hecla Mining Co. reported adjusted net income of 6 cents per share. By that measure, the company fell in line with the mean estimate of 6 cents per share. It beat the average revenue estimate of $85.1 million.

Quoting Management: “During the first quarter of 2012 we continued to invest in Hecla’s strong and diversified assets, making excellent progress in the rehabilitation of our Lucky Friday Silver Shaft and record investment in our Greens Creek mine. We also advanced all three major pre-development projects, with the goal of increasing our silver production and reserves by moving into development quickly,” said Hecla’s President and Chief Executive Officer Phillips S. Baker, Jr.

Key Stats:

The company fell in line with estimates last quarter after missing the mark in the previous two quarters. In the fourth quarter of the last fiscal year, it fell short by one cent, and in the third quarter of the last fiscal year, it was under-estimate by 2 cents.

Revenue has dropped in the past two quarters. In the fourth quarter of the last fiscal year, revenue declined 23.5% to $102.9 million from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 9 cents a share to 6 cents over the last ninety days. The average estimate for the fiscal year is 30 cents per share, down from 38 cents ninety days ago.

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

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