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Helix Energy Solutions Group Inc. Earnings: Fifth Straight Quarter of Expanding Margins

Helix Energy Solutions Group Inc. climbed to a profit in the fourth quarter, but still came up short of analyst expectations. Helix Energy Solutions Group is an international offshore energy company that provides reservoir development solutions and other contracting services to the energy market as well as to its own oil and gas properties.

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Helix Energy Solutions Group Earnings Cheat Sheet for the Fourth Quarter

Results: Reported a profit of $16.8 million (16 cents per diluted share) in the quarter. The oil and gas equipment and services company had a net loss of $49.8 million or a loss of 48 cents per share in the year-earlier quarter.

Revenue: Rose 29.3% to $396.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Helix Energy Solutions Group Inc. fell short of the mean analyst estimate of 36 cents per share. It beat the average revenue estimate of $330.8 million.

Quoting Management: Owen Kratz, President and Chief Executive Officer of Helix, stated, “when filtering out the impairments, much of which were associated with declining economics on our natural gas properties, Helix booked another strong operational quarter and generated a relatively significant amount of free cash flow.”

Key Stats:

Last quarter, the company’s gross margin expanded 2.6 percentage points from the year-earlier quarter to 7.8%. It was the fifth consecutive quarter of gross-margin growth. Over that span, margins have grown, on average, 25 percentage points per quarter on a year-over-year basis.

The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of 43 cents.

Revenue rose last quarter after dropping in the previous quarter. Revenue fell 5.1% to $372.5 million in the third quarter from the year earlier.

Looking Forward: Over the past ninety days, the average estimate for the first quarter of the next fiscal year has fallen from 33 cents per share to 31 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved up from $1.40 a share to $1.46 over the last thirty days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com