Tag Archives: Earnings Warning

Business, Finance, Occupation & Industry

Harvest Shares Collapse on Filing Delay, Likely "Going Concern" Opinion

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By 24/7 Wall St.

Oil pumpjack

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Energy producer Harvest Natural Resources Inc. (NYSE: HNR) saw its share price cut nearly in half earlier today following a company filing with the U.S. Securities and Exchange Commission (SEC) this morning stating that the firm will not be able to file its Form 10-K annual report on time. A failed sale of the company’s Venezuelan assets to Indonesia’s Pertamina earlier this year sent the stock down 40% in one day, from over $9 a share to around $5.50.

In its filing Harvest provided a laundry list of problems related to its financial reporting:

  • “[C]ertain errors related to our incorrect capitalization of certain lease maintenance costs”
  • “[C]ertain internal selling, general and administrative costs”
  • “[A]n error in the presentation of certain cash flow items”
  • A determination “that certain long-lived assets have been impaired”
  • “[C]ertain errors … that will require the company to revise and possibly restate its financial statements for certain periods in 2010, 2011, and 2012.

Harvest also said it expects to post a net loss of $9.6 million ($0.26 per share) for the 2012 fiscal year. Worst of all, the company’s auditors have said that the audit report “will include a going concern qualification.”

Shares are 34% at $3.61 in a previous range of $4.93 to $10.83.

Filed under: 24/7 Wall St. Wire, Commodities, Earnings Warning, Oil & Gas, Regulation Tagged: HNR

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Source: FULL ARTICLE at DailyFinance

Science & Technology

First Solar Sales Weakness To Drag On Peers

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By 24/7 Wall St.

Alternative Energy sources

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First Solar, Inc. (Nasdaq: FSLR) is out with its financial results for the fourth quarter of 2012. The solar PV-panel maker said that its net sales hit a record $1.1 billion in the quarter, but the big problem here is that Thomson Reuters was calling for sales of $1.32 billion. Wall Street does not care if that is a gain of $236 million from the third quarter of 2012 and a gain of $415 million from the fourth quarter of 2011. The comparable non-GAAP earnings came to $2.04 per share for the quarter and $4.90 per share for full-year 2012. Thomson Reuters was calling for $1.76 per share for the quarter and $4.61 per share for the year.

The sales gain was said to be primarily due to increased revenue recognition for the Topaz project and from higher third-party module sales. Cash and Marketable Securities at the end of 2012 came to $1 billion and its cash flow from operations was $328 million in the fourth quarter.

First Solar gave guidance for sales of $650 to $750 million with 25% to 27% gross margin, and earnings were put in a range of $0.70 to $0.90 per share. The estimates from Thomson Reuters are $828.9 million in sales and $0.94 per share in earnings. Other guidance is as follows: OPEX of $90 to $100 million; Operating income of $70 to $100 million; Tax rate between 11% and 13%; Cash flow from Operations of $0 to $100 million; and CAPEX of $80 to $100 million.

Shares of First Solar ran up way too much since the election with gains of 50% before backing off of late. The stock was down 4.2% to $31.36 at the close and the after-hours reaction has shares down over 5% more at $29.55 against a 52-week range of $11.43 to $37.18. The Thomson Reuters consensus price target before the effect of earnings and guidance was $26.45 for First Solar shares.

Solar stocks already saw their great growth and stocks are now a mere fraction of their former highs. It is going to be very difficult for these companies to sell themselves as cheap value stocks.

Filed under: 24/7 Wall St. Wire, Alternative Energy, Earnings, Earnings Warning, Green Biz, Infrastructure, Utilities Tagged: FSLR

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Huge Opportunity Coming in Bankrate Shares — for the Patient Investor

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By 24/7 Wall St.

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Bankrate Inc. (NYSE: RATE) was downgraded by analysts after the personal finance website had poor earnings and guidance. What 24/7 Wall St. wants to know is whether this is the sign of worse things to come or whether this fire-sale is creating a great opportunity as the stock challenges a new low.

Earnings tanked the stock on Wednesday after the night before brought the news that revenue came in at only $93.2 million. That is down from $113.8 million a year ago and was well less than the consensus of about $106.3 million. The reported earnings came to only $0.06 per share as well, and that was versus a consensus of $0.11 per share. To add insult to injury, Bankrate projected that 2013 would see flattish revenues over 2012′s $457.2 million. That is much less than the nearly $503 million expected by Wall St.

So here is where the dilemma comes into play. Bankrate hit a 52-week low of $10.00. This represents a post-IPO low since mid-2011. The company’s CEO said that this is the bottom of a transition curve in the insurance side of the business that will lead to higher quality and better margin leads. The CEO also said that credit card advertisers are starting to increase advertising as well. We wonder how much these gains will help since the company’s guidance is for flat revenues.

The chart has not yet confirmed the trend toward only lower and lower share prices. Generally one bad reaction like this (-18%) is followed by more drops, but the company is trying to signal a transition. Trust is hard to come by in companies, and it is amazing that this company still has a market cap of $1 billion.

Bankrate shares are down close to 19% at $10.05 on more than 2 million shares, and the stock hit a new 52-week low of $10.00 on Wednesday morning. The prior 52-week range was $10.01 to $25.95.

The chart from Stockcharts.com below is one that encourages patience rather than anything aggressive. Hitting a 52-week low when the DJIA and S&P are within striking distance of new highs is no great signal.

RATE 2 year chart

Filed under: 24/7 Wall St. Wire, Banking & Finance, Earnings, Earnings Warning, Internet Tagged: RATE

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Source: FULL ARTICLE at DailyFinance