Hecla Mining Company Third Quarter Earnings Sneak Peek

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Hecla Mining Company (NYSE:HL) will unveil its latest earnings on Tuesday, November 6, 2012. Hecla Mining is engaged in the discovery, acquisition, development, production and marketing of silver, gold, lead and zinc.

Hecla Mining Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 4 cents per share, a decline of 66.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 6 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 4 cents during the last month. For the year, analysts are projecting profit of 17 cents per share, a decline of 61.4% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after being in line with forecasts the quarter prior. In the second quarter, it reported net income of 2 cents per share versus a mean estimate of 5 cents. Two quarters ago, it reported profit of 6 cents per share.

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A Look Back: In the second quarter, profit fell 92.4% to $2.5 million (one cent a share) from $33.3 million (11 cents a share) the year earlier, missing analyst expectations. Revenue fell 43.1% to $67 million from $117.9 million.

Stock Price Performance: Between August 7, 2012 and October 31, 2012, the stock price rose $1.94 (41.8%), from $4.64 to $6.58. The stock price saw one of its best stretches over the last year between September 10, 2012 and September 21, 2012, when shares rose for 10 straight days, increasing 20.2% (+$1.15) over that span. It saw one of its worst periods between February 3, 2012 and February 15, 2012 when shares fell for nine straight days, dropping 9.6% (-52 cents) over that span.

Wall St. Revenue Expectations: On average, analysts predict $80.3 million in revenue this quarter, a decline of 33.4% from the year-ago quarter. Analysts are forecasting total revenue of $337.4 million for the year, a decline of 29.4% from last year’s revenue of $477.6 million.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 23.5% in the fourth quarter of the last fiscal year and 33.2% in first quarter before falling again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with 10 of 10 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.7 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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