Helix Energy Solutions Group Inc. Earnings: Beats Estimates

Helix Energy Solutions Group Inc. (NYSE:HLX) reported net income above Wall Street’s expectations for the first quarter. Helix Energy Solutions Group is an international offshore energy company that provides reservoir development solutions and other contracting services to the energy market as well as to its own oil and gas properties.

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Helix Energy Solutions Group Earnings Cheat Sheet for the First Quarter

Results: Net income for Helix Energy Solutions Group Inc. rose to $65.7 million (62 cents per share) vs. $25.9 million (24 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.

Revenue: Rose 39.9% to $407.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Helix Energy Solutions Group Inc. beat the mean analyst estimate of 44 cents per share. It beat the average revenue estimate of $343.9 million.

Quoting Management: Owen Kratz, President and Chief Executive Officer of Helix, stated, “First quarter results reflected the trend of increasing activity and high vessel utilization in our Contracting Services business including a significant improvement in our subsea construction business. Our Contracting Services business was able to post these improved results despite the Q4000 entering her scheduled regulatory dry dock during the month of March. First quarter results also benefited from relatively high premium prices realized on Gulf Coast crude oil sales.”

Key Stats:

Last quarter marked the fifth consecutive quarter of increasing gross margins, as the company’s gross margin expanded 13.2 percentage points from the year-earlier quarter to 39.6%. In this period, margins have grown an average of 20.3 percentage points per quarter on a year-over-year basis.

The company has now beaten estimates the last two quarters. In the fourth quarter of the last fiscal year, it topped expectations with net income of 66 cents versus a mean estimate of net income of 36 cents per share.

The company’s revenue has now risen for two quarters in a row. In the fourth quarter of the last fiscal year, revenue increased 29.3% to $396.2 million from the year-earlier quarter.

Looking Forward: Analysts have a more positive outlook about the company’s results for next quarter. The average estimate for second quarter is 43 cents per share, an increase from 39 cents sixty days ago. At $1.75 per share, the average estimate for the fiscal year has risen from $1.59 sixty days ago.

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

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