Horsehead Holding Corp. (NASDAQ:ZINC) delivered a profit and met 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.
Horsehead Holding Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share were the same at $0.05 in the quarter as EPS of $0.05 in the year-earlier quarter.
Revenue: Rose 6.19% to $118.26 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Horsehead Holding Corp. reported adjusted EPS income of $0.05 per share. By that measure, the company met the mean analyst estimate of $0.05. It beat the average revenue estimate of $113.69 million.
Quoting Management: “Our adjusted earnings improved compared with the prior year’s quarter as higher realized premiums to the LME zinc price more than offset reduced volume of shipments. The performance of the business was positive as we prepare for the transition to new production facilities later this year. Demand for our zinc products was solid and our zinc smelting facility operated at full capacity. We chose to reduce shipments of zinc products compared with the prior year’s quarter in order to realize higher sales premiums and to build inventory to support customer demand during the transition of metal and oxide production from Monaca to North Carolina and Zochem, respectively,” said Jim Hensler, President and Chief Executive Officer.
Key Stats (on next page)…
Revenue increased 11.1% from $106.44 million in the previous quarter. EPS increased 150% from $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 $0.07 to a profit $0.02. For the current year, the average estimate has moved down from a profit of $0.37 to a profit of $0.09 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)