Hercules Offshore Earnings: Here’s Why the Stock is Up Now

Hercules Offshore, Inc. (NASDAQ:HERO) delivered a profit and beat Wall Street’s expectations, BUT 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 up 0.56%.

Hercules Offshore, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.10 in the quarter versus EPS of $-0.12 in the year-earlier quarter.

Revenue: Rose 23.78% to $221.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Hercules Offshore, Inc. reported adjusted EPS income of $0.10 per share. By that measure, the company beat the mean analyst estimate of $0.05. It missed the average revenue estimate of $224.89 million.

Quoting Management: John T. Rynd, Chief Executive Officer and President of Hercules Offshore stated, “Over the past few months, we have taken significant steps to transform the Company to a more focused provider of offshore drilling and international liftboat services, culminating in our acquisition of Discovery Offshore. This acquisition represents a major step forward in our fleet renewal efforts, and adds two world-class jackup rigs with market leading capabilities. Demand for rigs of this caliber is increasing, and we are actively seeking attractive contract opportunities in various international regions. At the same time we high-graded our drilling fleet with Discovery, we also divested of lower performing assets through the sale of our Domestic Liftboats and Inland segments. Given these strategic moves, we expect to be a more geographically diverse company, operating in regions that have attractive long term growth fundamentals.”

Key Stats (on next page)…

EPS increased to $0.10 in the quarter versus EPS of $-0.02 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 $0.08. For the current year, the average estimate has moved down from a profit of $0.29 to a profit of $0.23 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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