10/27/11 (PennyPayDay) --McDermott International Inc. (NYSE: MDR), which engineers and builds offshore drilling sites, said on Wednesday that its third quarter net income and revenue would be less than expected, and its shares fell 20 percent in aftermarket trading.The company said it now expects third-quarter earnings per share of 3 cents to 5 cents, with revenue of $870 million to $880 million. Analysts surveyed by FactSet had been expecting a profit of 29 cents per share with revenue of $891.2 million.
McDermott said the lower expectations were prompted by its management's recent operating reviews. It said that about three-quarters of the project losses that led to the shortfall are in its Atlantic segment. It said it is still reviewing the root causes of the charges. The company will report final results after markets close on Nov. 8.
Stephen M. Johnson, the president's chairman, president, and CEO, said the third quarter results "are not indicative of our outlook for the future." Clearly, we are disappointed with the operating and net income expected for the quarter, he said in a written statement.
McDermott shares fell $2.94 to $11.69 in aftermarket trading. Before the news about its third-quarter profits, shares had risen 53 cents, or 3.8 percent, to close at $14.63. Currently, it is trading at $9.88, down 32% for the day.
No comments:
Post a Comment