Hercules Offshore Earnings: Here’s Why Investors Don’t Like These Results

Hercules Offshore, Inc. (NASDAQ:HERO) had a loss 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 down 4.18%.

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Hercules Offshore, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.02 in the quarter versus EPS of $-0.28 in the year-earlier quarter.

Revenue: Rose 43.25% to $205.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Hercules Offshore, Inc. reported adjusted EPS loss of $0.02 per share. By that measure, the company beat the mean analyst estimate of $-0.04. It beat the average revenue estimate of $204.13 million.

Quoting Management: John T. Rynd, Chief Executive Officer and President of Hercules Offshore stated, “Market conditions in the U.S. Gulf of Mexico remain strong, as dayrates continue to trend higher and contract backlog stays near record levels. Our first rig reactivation, the Hercules 209, is nearing completion, and we are assessing market demand for a second reactivation. Internationally, we continue to add scale and upgrade our global fleet. We recently commenced operations on the Hercules 266 under its long term contract, and closed on the acquisitions of the Hercules 267 (formerly Ben Avon) and the White Shark (formerly Titan 2). These acquisitions demonstrate our ability to successfully deploy capital toward high return opportunities, while de-risking the investments with assets that have strong long term demand prospects and through long term contracts. We continue to look for acquisition opportunities to enhance our international footprint and high-grade our asset base.”

Key Stats (on next page)…

Revenue increased 1.32% from $202.63 million in the previous quarter. EPS decreased to $-0.02 in the quarter versus EPS of $0.03 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.09 and has not changed. For the current year, the average estimate has moved down from a profit of $0.31 to a profit of $0.27 over the last ninety days.

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