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Hecla Mining (HL) Earnings & Revenues Miss Estimates in Q1

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Hecla Mining’s (HL - Free Report) first-quarter 2022 adjusted earnings per share of 1 cent missed the Zacks Consensus Estimate of 2 cents by a margin of 50%. The company had reported earnings of 6 cents per share in the first quarter of 2021.

The company’s revenues declined 11.5% year over year to $186.5 million in the quarter under review. The top-line figure lagged the Zacks Consensus Estimate of $187 million.

Total cost of sales dipped 1.7% year on year to $141 million in the quarter. Gross profit plunged 33% to $45.4 million. Gross margin in the first quarter of 2022 was 24.4%, a 760 basis point contraction from the year-ago quarter. Adjusted EBITDA was $58.2 million, down from $86.6 million in the first quarter of 2021.

Realized silver price was $24.68 per ounce in the quarter. The company reported cash costs per silver equivalent ounce and all-in sustaining costs (AISC) per silver ounce of $7.64 in the quarter.

Hecla Mining Company Price, Consensus and EPS Surprise

Hecla Mining Company Price, Consensus and EPS Surprise

Hecla Mining Company price-consensus-eps-surprise-chart | Hecla Mining Company Quote

Hecla Mining reported silver production of 3.3 million ounces in the first quarter of 2022. Compared with the first quarter of 2021, production was down 7%. Backed by strong grades and its innovative mining method at the Lucky Friday mine, HL expects the mine’s quarterly silver numbers to exceed one million ounces for the balance of the year.

Financial Position

Hecla Mining ended first-quarter 2022 with $213 million of cash in hand, up from the $211 million held at the end of 2021. Cash flow from operating activities was $37.9 million in the reported quarter compared with the prior-year quarter’s $53.3 million. HL returned 21% of its free cash flow to common and preferred shareholders through dividends.

Price Performance

Zacks Investment Research
Image Source: Zacks Investment Research

Shares of Hecla Mining have fallen 41.3% in the past year compared with the industry's decline of 44.5%.

Zacks Rank & Stocks to Consider

Hecla Mining currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , Commercial Metals Company (CMC - Free Report) and Nutrien (NTR - Free Report) .

Steel Dynamics, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 18.5% for the current year. The Zacks Consensus Estimate for STLD's earnings for the current year has been revised upward by 32.5% over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Steel Dynamics beat the Zacks Consensus Estimate for earnings in each of the last four quarters, the average surprise being 2.5%. STLD has gained around 27% in the past year.

Commercial Metals, presently flaunts a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's earnings for the current fiscal year has been revised 31.9% upward over the past 60 days.

Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed once, the average surprise being 16%. CMC has gained around 20% in a year.

Nutrien, carrying a Zacks Rank #1 at present, has an expected earnings growth rate of 42.8% for the current year. NTR’s consensus estimate for earnings for the current year has been revised 37% upward in the past 60 days.

Nutrien beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 5.8%. NTR has rallied around 53% in a year’s time.