HME released earnings. We attempt to answer earnings questions ASAP but it can't be instantaneous. Small caps tend to be volatile, and declines do not always mean something is 'wrong'. HME remains up 12% for the year.
Q3 EPS of 7c missed estimates of 7.5c; revenue of $23.1M beat estimates of $20.4M. Production was 3,571 b/d. Free cash flow was $4.9M. Operating netback of $41.39 did decline from last year on lower prices. Production did decline 1% but post-quarter end was back in line with prior levels. Still production guidance was dropped about 300 b/d, largely due to outages. Full guidance will be released in January. Not 'great' news, but the stock decline today we think fully reflects the situation. We would remain comfortable with the stock and would be a buyer on more weakness, keeping in mind its small size and inherent cyclicality.