HLX: Helix Energy Solutions Estimates Spiraling Downward
Small Cap Watch List (Track at Marketocracy) and Mid Cap Watch List (Track at Marketocracy) member Helix Energy Solutions (HLX) reported first quarter net income of $55.8 million, or $0.60 per diluted share on $396 million in revenue. Analysts had been expecting the company to earn $0.69 on $406 million. The outlook appears no more promising:
“During the improved weather of Q2 we will swing into action with our production enhancement efforts and the results should start to show in Q3. For that reason we expect our Q2 earnings performance to be similar to that achieved in Q1. We have also completed an assessment of the key variables that drive our earnings for the year and that will be covered in the conference call tomorrow. Based on this analysis, we narrow our full year earnings guidance range to $3.00 — $3.90/share.”
That is a pretty wide range for a narrowing of guidance. At the $3.45 midpoint it is also well below the current consensus estimate of $3.61. That estimate, in turn, has been cut by nearly 10% over the last 90 days. Shares traded down nearly 5% in after-hours trading following the earnings release.
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