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Horsehead Holdings (ZINC) Reports Q3 Earnings

November 5, 2009 5:05 PM EST
ZINC Hot Sheet
EPS Growth %: -72.7%

Financial Fact:
Depreciation and amortization: 6.04M

Today's EPS Names:
TARO, BRLI, TLB, More
Horsehead Holdings (NASDAQ: ZINC) reports a Q3 loss of $0.20 (Earnings before the effect of hedges and certain non-cash charges, a non-GAAP measure(1), were $0.5 million for the current quarter, or $0.01 per diluted share) vs. the analyst estimate of ($0.07). Revenue for the quarter was $60.3 million, which compares to the estimate of $64.14 million.

"In keeping with our strategy of hedging the price of zinc to minimize downside risk, we have moved forward over the last six weeks while option prices were attractive to purchase put options for 2010 at a strike price of $0.65 per pound for a cost of approximately $5.3 million. We believe this provides an important protection to the liquidity of the business in the event that the price of zinc declines significantly from current levels while allowing the company to fully benefit from higher zinc prices."

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