Helix Energy Solutions Group Beats on Both Top and Bottom Lines

Helix Energy Solutions Group (NYS: HLX) reported earnings on July 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Helix Energy Solutions Group beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly. GAAP earnings per share dropped significantly.

Margins shrank across the board.

Revenue details
Helix Energy Solutions Group tallied revenue of $232.2 million. The three analysts polled by S&P Capital IQ hoped for revenue of $212.5 million on the same basis. GAAP reported sales were 33% lower than the prior-year quarter's $347.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.26. The seven earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. GAAP EPS of $0.26 for Q2 were 38% lower than the prior-year quarter's $0.42 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 29.1%, 540 basis points worse than the prior-year quarter. Operating margin was 20.8%, 610 basis points worse than the prior-year quarter. Net margin was 11.7%, 120 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $217.2 million. On the bottom line, the average EPS estimate is $0.30.

Next year's average estimate for revenue is $897.6 million. The average EPS estimate is $1.00.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 906 members out of 944 rating the stock outperform, and 38 members rating it underperform. Among 220 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 214 give Helix Energy Solutions Group a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Helix Energy Solutions Group is outperform, with an average price target of $27.50.

Is Helix Energy Solutions Group the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.

• Add Helix Energy Solutions Group to My Watchlist.