Harsco Corporation (NYSE:HSC) is scheduled to report Q3 earnings results before markets open for trading on November 3, 2020.
The company is expected to report earnings of $0.05/share on revenue of $480.4 million. The consensus earnings per share (EPS) of $0.05/share is based on a poll of 6 analysts and represents a decline in eps of −83.9% over the same quarter last year, when the company reported earnings of $0.30/share.
The revenue forecast of $480.4 million based on a poll of 6 analysts implies a year-over-year (YoY) growth in revenue of 13.5%. Last year the company reported $423.2 million in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 5 out of the last 8 tracked quarters, missed 1 quarter, and met expectations 2 quarters.
What are your expectations from Harsco Corporation for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −8.7%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|August 5, 2020||$16.60||$15.15||−8.7%||Decline|
|May 8, 2020||$8.10||$9.95||22.8%||Increase|
|February 21, 2020||$15.48||$15.10||−2.5%||Decline|
|October 29, 2019||$20.58||$20.59||0.0%||Increase|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.04, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.04 implies a 2.1% chance of earnings manipulation.
Fundamentals And Technical Analysis
Harsco Corporation is currently trading at $13.76/share, down −5.8% for the day. The company is trading at approximately 58.7% of its 52-week high of $23.61/share. The company’s stock price is down −9.2% since the last earnings report and down −9.9% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 48.96 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 1,005.89 and a forward P/E multiple of 60.43.
Harsco Corporation’s current share price also implies a price-to-book (P/B) multiple of 1.51. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 30, 2020|
|Stock Price (Current)||$13.76|
|P/E Ratio (Fwd)||60.4x|
|Total Debt / Total Capital||53.0%|
|Levered Free Cash Flow||-$129 million|
|EV / EBITDA||9.3x|
Harsco Corporation is a small-cap stock with a market capitalization of $1.153 billion and a total enterprise value of $2.476 billion. The company operates in the Industrials sector and the Commercial Services & Supplies industry.
Harsco Corporation provides environmental solutions for industrial and specialty waste streams, and innovative equipment and technology for the rail sector worldwide. It operates through three segments: Harsco Environmental, Harsco Clean Earth, and Harsco Rail. The Harsco Environmental segment offers on-site services of material logistics, product quality improvement, and resource recovery for iron, steel, and metals manufacturing; manufactures and sells industrial abrasives, roofing granules, aluminum dross, and scrap processing systems; and produces value-added downstream products from industrial waste-stream. The Harsco Clean Earth segment provides specialty waste processing and beneficial reuse solutions for hazardous wastes, contaminated materials, and dredged volumes. The Harsco Rail segment offers equipment, after-market parts, and services for the maintenance, repair, and construction of railway track. This segment manufactures and sells highly-engineered railway track maintenance equipment, and collision avoidance and warning systems to support passenger, rail worker, and pedestrian safety, as well as measurement and diagnostic technologies that support railway maintenance programs. The company was founded in 1853 and is headquartered in Camp Hill, Pennsylvania.