Earlier this week, Harsco Corporation (HSC) received three multi-year contract renewals with total value of over $120 million. Two of these awards pertain to continuing its on-site operations at two U.S. steel manufacturing units, whereas the third contract is for the reconstruction and recovery of the Geneva Steel works at Vineyard, Utah.
The renewal contracts attained by Harsco shall directly escalate revenues for its Metals and Minerals segment, adding to the record $1 billion sales projection made on the back of contract awards in 2011. Furthermore, the 1,700 acre land at Vineyard near the Utah Lake shall create around 7,500 houses along with vast endemic industrial and office locations after rebuilding of the site is completed by Harsco.
Harsco’s perennial contract wins have become highly laudable with time. The last major awards received by the company were on April 18, 2012 when Harsco was offered two construction project contracts in Germany. These contracts, pertaining to the Infrastructure segment of the company, are to fetch revenues of nearly $1 million.
However, there are a few companies not far behind in making advances to post impressive financial results. On April 17, 2012, W.W. Grainger, Inc. (GWW) recorded an annual hike of nearly 16% in total revenue to reach a whopping $2.2 billion for its first quarter of 2012. Harsco should forever keep a wary eye out for such big players in the industry.
The current Zacks Consensus Estimates for the second quarter of fiscal 2012 and for fiscal 2012 are 35 cents per share and $1.40 per share, respectively. The company currently retains a Zacks #4 Rank, which translates into a short-term ‘Sell’ rating. We also have an ‘Underperform’ recommendation on the company’s stock.
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