Harsco Co. is up 10.3% in late-morning trading on Thursday after announcing positive preliminary Q2 2016 operating results and adjusting their guidance.
The Camp Hill, PA based company provides engineered products and such services as gas control, scaffolding, railway maintenance, and mill management.
For the second quarter, HSC expects U.S. GAAP operating income of $1 million. Included in this figure is a loss provision of about $40 million related to HSC’s partnership with SBB, the federal railway system in Switzerland. Excluding this, HSC expects adjusted operating income of $41 million, significantly higher than the firm’s Q2 guidance of $22 million to $27 million in adjusted operating income.
As a result of increased input costs, HSC expects their contract with SBB to result in a loss. According to the company, their positive expected results are due in part to its metals and minerals segment along with reduced overhead costs.
“We are clearly disappointed with the development on our Rail contracts with SBB,” said President and CEO Nick Grasberger; however, he maintained a positive outlook on the company’s productive capabilities moving forward.
HSC adjusted their guidance for full year 2016 up $20 million from their previous estimate of $80 million to $100 million in May.
HSC will release its Q2 earnings report before the NYSE opens on August 4th.
There is a 100% agreement in upward estimate revisions for this quarter, with current estimates of $0.06 in earnings per share, up from $0.05 thirty days ago. Furthermore, earnings estimates for this fiscal year have been revised upward as well, currently at $0.30 in earnings per share compared to $0.27 thirty days ago.
Harsco Co. currently sits at a Zacks Rank #1 (Strong Buy).
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Why is Harsco Co. (HSC) Up Today?
Harsco Co. is up 10.3% in late-morning trading on Thursday after announcing positive preliminary Q2 2016 operating results and adjusting their guidance.
The Camp Hill, PA based company provides engineered products and such services as gas control, scaffolding, railway maintenance, and mill management.
For the second quarter, HSC expects U.S. GAAP operating income of $1 million. Included in this figure is a loss provision of about $40 million related to HSC’s partnership with SBB, the federal railway system in Switzerland. Excluding this, HSC expects adjusted operating income of $41 million, significantly higher than the firm’s Q2 guidance of $22 million to $27 million in adjusted operating income.
As a result of increased input costs, HSC expects their contract with SBB to result in a loss. According to the company, their positive expected results are due in part to its metals and minerals segment along with reduced overhead costs.
“We are clearly disappointed with the development on our Rail contracts with SBB,” said President and CEO Nick Grasberger; however, he maintained a positive outlook on the company’s productive capabilities moving forward.
HSC adjusted their guidance for full year 2016 up $20 million from their previous estimate of $80 million to $100 million in May.
HSC will release its Q2 earnings report before the NYSE opens on August 4th.
There is a 100% agreement in upward estimate revisions for this quarter, with current estimates of $0.06 in earnings per share, up from $0.05 thirty days ago. Furthermore, earnings estimates for this fiscal year have been revised upward as well, currently at $0.30 in earnings per share compared to $0.27 thirty days ago.
Harsco Co. currently sits at a Zacks Rank #1 (Strong Buy).
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