Hercules Offshore Earnings: Here’s Why Investors are Happy Now

Hercules Offshore, Inc. (NASDAQ:HERO) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.5%.

Hercules Offshore, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.03 in the quarter versus EPS of $-0.16 in the year-earlier quarter.

Revenue: Rose 24.45% to $202.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Hercules Offshore, Inc. reported adjusted EPS income of $0.03 per share. By that measure, the company beat the mean analyst estimate of $-0.07. It beat the average revenue estimate of $187.87 million.

Quoting Management: John T. Rynd, Chief Executive Officer and President of Hercules Offshore stated, “Market fundamentals in the U.S. Gulf of Mexico strengthened throughout 2012, to levels that, in many respects, are the best they have been in the long history of drilling in the region. This momentum continues through to today. As we begin 2013, the visibility in our core domestic business is unsurpassed, with customer discussions already focusing on 2014 demand. Given the limited availability of rigs and strong interest from customers, we have embarked on our first rig reactivation. Additional reactivations, as well as further growth in backlog and dayrates, are contingent on commodity prices, rig availability, and customer demand. We will remain disciplined in our capital allocation decisions, however, we are optimistic regarding our growth prospects based on current market dynamics in the U.S. Gulf of Mexico.”

Key Stats (on next page)…

Revenue increased 9.58% from $184.89 million in the previous quarter. EPS increased to $0.03 in the quarter versus EPS of $-0.10 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 $0.04 to a profit $0.03. For the current year, the average estimate is a loss of $0.56, which is the same with that ninety days ago.

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