Momentum Stock in Focus: Helix Energy Solutions Group, Inc. (NYSE:HLX)

Helix Energy Solutions Group, Inc. (NYSE:HLX) reported earnings for the three months ended Mar2016 on April 19, 2016. The company earned $-0.26 per share on revenue of $91.04M. Analysts had been modeling earning per share of $-0.28 with $105.25M in revenue.

Helix Energy Solutions Group, Inc. (HLX) on April 19, 2016 reported Adjusted EBITDA1 of $1.0 million for the first quarter of 2016 compared to $34.2 million for the fourth quarter of 2015 and $51.4 million for the first quarter of 2015.

Helix reported a net loss of $27.8 million, or $(0.26) per diluted share, for the first quarter of 2016 compared to net income of $19.6 million, or $0.19 per diluted share, for the same period in 2015 and a net loss of $403.92 million, or $(3.83) per diluted share, for the fourth quarter of 2015.

Owen Kratz, President and Chief Executive Officer of Helix, stated, “We expected the first quarter to be the low quarter in 2016 due to continuing weak industry conditions combined with typical seasonal factors. Going forward, we expect to see improved financial performance for the remaining quarters due to the commencement of the Q5000 contract and the normal seasonal pick up in well intervention activity in the North Sea. ”

Fourth quarter 2015 results were impacted by $503.1 million of non-cash pre-tax charges as follows:

• Impairment charges of $256.2 million associated with our Production Facilities assets


• Impairment charge of $205.2 million associated with the Helix 534


• Impairment charge of $6.3 million associated with other Well Intervention assets


• Goodwill impairment charge of $16.4 million associated with Well Intervention business in the U.K.


• Unrealized losses of $19.0 million associated with ineffectiveness of our foreign currency derivative contracts

Helix Energy Solutions Group, Inc. earnings per share showed a decreasing trend of -293.6% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 2%.Analysts project EPS decline over the next 5 years at 0%. It has EPS annual decline over the past 5 fiscal years of -19.45% when sales declined -2.1. It reported -52% sales drop, and -240.8% EPS decline in the last quarter.

The stock is trading at $8.01, up 208.08% from 52-week low of $2.6. The stock trades down -50.98% from its peak of $16.34 and 19.35% above the consensus price target of $9.56. Its volume clocked up at 1.98 million shares which is higher than the average volume of 1.87 million shares. Its market capitalization currently stands at $841.96M.