Horsehead Holding Corp. (NASDAQ:ZINC) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Horsehead Holding Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.02 in the quarter versus EPS of $0.03 in the year-earlier quarter.
Revenue: Decreased 5.95% to $110.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Horsehead Holding Corp. reported adjusted EPS loss of $0.02 per share. By that measure, the company missed the mean analyst estimate of $0.03. It missed the average revenue estimate of $112.07 million.
Quoting Management: “We are pleased that earnings improved slightly compared with the prior year’s second quarter despite lower commodity prices as we begin the transition of winding down the Monaca operation, starting-up our new Mooresboro, North Carolina plant and expanding Zochem. Lower commodity prices were partially offset by higher realized premiums to the LME zinc price. Zinc product shipments lagged the prior year’s quarter as we built inventory to support the transition and as a result of the move toward a higher margin, lower volume strategy in our zinc oxide business. INMETCO and Zochem also turned in solid operating quarters. Production costs were unfavorably affected by reduced operating levels at the Monaca smelter as we temporarily idled one of our six smelting furnaces early in the quarter during the previously announced column rebuilds,” said Jim Hensler, President and Chief Executive Officer.
Key Stats (on next page)…
Revenue decreased 6.56% from $118.26 million in the previous quarter. EPS decreased to $-0.02 in the quarter versus EPS of $0.05 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.01 to a profit $0.04. For the current year, the average estimate has moved up from a profit of $0.09 to a profit of $0.13 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)