Harsco Corporation (NYSE:HSC), a company that provides industrial services and engineered products globally yesterday reported their preliminary second quarter 2016 financial results. Harsco projected second quarter operating income to be $41 million which beat previous guidance of operating income of $22 million to $27 million.
Harsco Corporation CEO’s Comments
We are clearly disappointed with the developments on our Rail contracts with SBB, said President and CEO Nick Grasberger. Despite this challenge, we have made considerable progress in recent months developing our highly-advanced equipment for this important customer. We look forward to executing against these contracts over the next year and remain confident that we are building a profitable business within the European rail market.
As for the remainder of 2016, we are very encouraged by our underlying operating results in M&M against key performance indicators. For example, we anticipate that the EBITDA minus capex margin in this segment will roughly double in 2016 compared to the periods prior to the launch of Project Orion, despite lower revenues and a meaningful decrease in certain commodity prices. Also, the fundamental improvement in the steel and energy markets in recent months has reduced business risk and we are optimistic on Harsco’s ability to demonstrate significant operating leverage when key markets recover further. Globe Newswire
HSC Technical Analysis
HSC opened trading yesterday at $8.56, which was up from the previous days trading of $8.05. HSC closed trading yesterday at $9.05 and continued the climb up after market to $9.35, equivalent to a 9% increase from the opening price. Taking a look at the daily chart we can see the last time HSC traded above these levels was on December 4th, 2015 when it traded at $9.86. Taking a closer look at the daily chart we can see that HSC has been on an overall upward trend dating back to June 27th when it traded of $5.26. HSC has a float of 79.60 million shares and traded 3.4 times the normal daily trading volume on Thursday. For trading purposes, I would like to see HSC open trading on Friday above $9.10 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Harsco Corporation provides industrial services and engineered products worldwide. The company operates through three segments: Harsco Metals and Minerals, Harsco Rail, and Harsco Industrial. The Harsco Metals and Minerals segment provides on-site outsourced services of material logistics, product quality improvement, and resource recovery for iron, steel metals, and asphalt roofing manufacturing; and value added environmental solutions for industrial co-products, as well as manufactures industrial abrasives and roofing granules. The Harsco Industrial segment manufactures and supplies custom-engineered and manufactured air-cooled heat exchangers for the natural gas, natural gas processing, and petrochemical industries; industrial grating products, which include a range of metal bar grating configurations for industrial flooring, and safety and security applications in the energy, paper, chemical, refining, and processing industries, as well as offers GrateGuard, a fencing solution for first-line physical security; and heat transfer products, such as boilers and water heaters for commercial and institutional applications. The Harsco Rail segment designs and manufactures safety systems for transportation and industrial applications; and equipment, after-market parts, and services for the maintenance, repair, and construction of railway track. This segment serves private and government-owned railroads, and urban mass transit systems. Harsco Corporation was founded in 1853 and is headquartered in Camp Hill, Pennsylvania. Yahoo (NASDAQ:YHOO) Finance