NEW YORK (TheStreet) -- Horsehead Holding (ZINC) shares are climbing, up 7.9% to $16.75, following the release of the company's first quarter earnings results on Monday.
The zinc and nickel based product producer posted a net loss of -2 cents per share, 6 cents better than analysts expected.
Revenues fell -6.9% from the same period last year to $110.1 million, slightly below analysts estimates of $110.9 million.
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TheStreet Ratings team rates HORSEHEAD HOLDING CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate HORSEHEAD HOLDING CORP (ZINC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, ZINC's share price has jumped by 34.63%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- HORSEHEAD HOLDING CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HORSEHEAD HOLDING CORP continued to lose money by earning -$0.30 versus -$0.69 in the prior year. This year, the market expects an improvement in earnings ($0.28 versus -$0.30).
- ZINC, with its decline in revenue, slightly underperformed the industry average of 6.3%. Since the same quarter one year prior, revenues slightly dropped by 2.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The gross profit margin for HORSEHEAD HOLDING CORP is currently extremely low, coming in at 10.95%. Regardless of ZINC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ZINC's net profit margin of -12.00% significantly underperformed when compared to the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has decreased by 11.5% when compared to the same quarter one year ago, dropping from -$11.16 million to -$12.44 million.
- You can view the full analysis from the report here: ZINC Ratings Report