NEW YORK (TheStreet) -- Shares of Hecla Mining  (HL - Get Report) surged 7.76% to $2.36 in afternoon trading Tuesday due to a rise in silver prices.

Hecla, which primarily produces silver, received a boost from the price of silver futures, which rose 1.08% to $15.84 an ounce, according to CNBC.

The Idaho-based company reported third-quarter results last week that came up short of analysts' expectations. Income totaled $3.7 million with an adjusted loss of a penny per diluted share. Analysts had expected the company to break even for the quarter.

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Revenue rose 27% year-over-year to $135.5 which beat the consensus estimate of $127.6 million for the quarter.

Separately, TheStreet Ratings team rates HECLA MINING CO as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate HECLA MINING CO (HL) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • HL's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 30.55%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • 35.81% is the gross profit margin for HECLA MINING CO which we consider to be strong. Regardless of HL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HL's net profit margin of 2.71% is significantly lower than the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Metals & Mining industry and the overall market, HECLA MINING CO's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • HECLA MINING CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. 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, HECLA MINING CO swung to a loss, reporting -$0.08 versus $0.05 in the prior year. This year, the market expects an improvement in earnings ($0.01 versus -$0.08).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 143.5% when compared to the same quarter one year prior, rising from -$8.46 million to $3.68 million.
  • You can view the full analysis from the report here: HL Ratings Report

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