Back to top

Image: Bigstock

HC2 Holdings (HCHC) to Report Q3 Earnings: What to Expect?

Read MoreHide Full Article

HC2 Holdings, Inc. is slated to report third-quarter 2020 results on Nov 9, after market close.

The company delivered better-than-expected results in three of the last four quarters and missed estimates in the other. It has a trailing four-quarter earnings surprise of 41.91%, on average. Notably, its reported earnings of 26 cents per share in the prior quarter surpassed the Zacks Consensus Estimate of loss of 39 cents by 166.67%.

In the past three months, shares of the company have declined 25.9% compared with the industry’s growth of 13.4%.



Let us delve deeper.

Key Factors & Estimates for Q3

HC2 Holdings’ products and services offerings, its exposure in multiple end markets and a solid customer base, are likely to have supported the company’s performance in the third quarter. Also, efforts to reduce debts and strengthen the balance sheet as well as focus on lowering corporate expenditures are other tailwinds that might have been conducive to its quarterly performance.

For the Energy segment, benefits from 20 fueling stations (acquired in 2019) and the Alternative Fuels Tax Credit aided HC2 Holdings’ performance in the second quarter. Benefits from this trend might have influenced the segment’s performance in the third quarter as well.

The Construction segment’s results might mirror the unfavorable impacts of project delays (due largely to adverse impacts of the pandemic) by customers and volatility in the oil & gas markets. However, the company’s cost-containment efforts are expected to have been a relief.

For the Life Sciences segment, enhanced distribution of R2 skin lighting products and devices, especially in the Asia Pacific countries, might have aided HC2 Holdings during the September-end quarter. For the Broadcasting segment, postponement in advertising actives might have adversely impacted revenues in the quarter.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $400 million, suggesting a 16% decline from the year-ago period and 6.1% growth from the last reported quarter.

The Zack Consensus Estimate for the company’s bottom line is pegged at loss of 35 cents per share. This estimate compares unfavourably with the loss per share of 16 cents reported in the year-ago quarter and earnings of 26 cents recorded in the previous quarter.

Earnings Whispers

Our proven model does not conclusively suggest an earnings beat for HC2 Holdings this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case with HC2 Holdings as is shown below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: HC2 Holdings has an Earnings ESP of 0.00%, with both the Most Accurate Estimate and the Zacks Consensus Estimate pegged at loss of 35 cents.

HC2 Holdings, Inc. Price, Consensus and EPS Surprise

HC2 Holdings, Inc. Price, Consensus and EPS Surprise

HC2 Holdings, Inc. price-consensus-eps-surprise-chart | HC2 Holdings, Inc. Quote

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks to Consider

Here are some companies in the Zacks Industrial Products sector that you may want to consider as these also have the right combination of elements to post an earnings beat this season.

Deere & Company (DE - Free Report) currently has an Earnings ESP of +9.76% and is a Zacks #3 Ranked player, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Nordson Corporation (NDSN - Free Report) presently has an Earnings ESP of +1.96% and carries a Zacks Rank of 3.

Flowserve Corporation (FLS - Free Report) currently has an Earnings ESP of +2.56% and holds a Zacks Rank #2.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Deere & Company (DE) - free report >>

Flowserve Corporation (FLS) - free report >>

Nordson Corporation (NDSN) - free report >>

Published in