Managing a company is no easy task, and it is made more difficult when unexpected hurdles wipe out most the gains you previously made. That is what is facing our Zacks Bear of the Day, Team Inc. (TISI - Free Report) who saw increased demand during their busy season, but then witnessed demand for their products plummet during the last two months of 2016. Further, this unexpected weakness has caused analysts to pencil in another year of uncertain market demands.
This Zacks Rank #5 (Strong Sell) is a professional full service provider of environmental engineering, consulting, monitoring and repair services. Environmental engineering, consulting and monitoring services, primarily in air quality together with on-stream leak repair and related industrial services for piping systems and process equipment, are provided by subsidiaries of the Company through its Environmental Services business segment.
Recent Earnings Data
On March 8th, management reported Q4 16 results where they significantly missed both the Zacks consensus earnings estimate (est. $0.45 vs. actual $0.08), and revenue estimate (est. $347 million vs. actual $320 million). The company posted a net loss of $12.7 million compared to a net income of $25.2 million in the year ago quarter. Also adjusted net income fell by -63.8% from Q4 15. Lastly, management also withheld earnings guidance for 2017 as they wait for a sustained pattern of market normalization.
Management’s Take
According to Ted Owen, President and CEO, “We are obviously disappointed in our results for the quarter, especially after seeing increased demand levels during our busiest fall turnaround months of September and October. We were encouraged then that the early fall activity levels were the first signs of more normalized market activity, but that did not turn out to be the case. After the brief spike in demand for our services during the first month of the fourth quarter, demand weakened again in November and December. In spite of the soft demand in 2016, we continue to be optimistic that end markets will improve during 2017 and we are no less confident in the platform we are building as the premier industrial services company. However, until we begin to see a sustained pattern of market normalization, we will continue to withhold earnings guidance for 2017.”
Price and Consensus Graph
As you can see in the graph below, the stock price has fallen of late, and future earnings estimates have also significantly declined.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Managing a company is no easy task, and it is made more difficult when unexpected hurdles wipe out most the gains you previously made. That is what is facing our Zacks Bear of the Day, Team Inc. (TISI - Free Report) who saw increased demand during their busy season, but then witnessed demand for their products plummet during the last two months of 2016. Further, this unexpected weakness has caused analysts to pencil in another year of uncertain market demands.
This Zacks Rank #5 (Strong Sell) is a professional full service provider of environmental engineering, consulting, monitoring and repair services. Environmental engineering, consulting and monitoring services, primarily in air quality together with on-stream leak repair and related industrial services for piping systems and process equipment, are provided by subsidiaries of the Company through its Environmental Services business segment.
Recent Earnings Data
On March 8th, management reported Q4 16 results where they significantly missed both the Zacks consensus earnings estimate (est. $0.45 vs. actual $0.08), and revenue estimate (est. $347 million vs. actual $320 million). The company posted a net loss of $12.7 million compared to a net income of $25.2 million in the year ago quarter. Also adjusted net income fell by -63.8% from Q4 15. Lastly, management also withheld earnings guidance for 2017 as they wait for a sustained pattern of market normalization.
Management’s Take
According to Ted Owen, President and CEO, “We are obviously disappointed in our results for the quarter, especially after seeing increased demand levels during our busiest fall turnaround months of September and October. We were encouraged then that the early fall activity levels were the first signs of more normalized market activity, but that did not turn out to be the case. After the brief spike in demand for our services during the first month of the fourth quarter, demand weakened again in November and December. In spite of the soft demand in 2016, we continue to be optimistic that end markets will improve during 2017 and we are no less confident in the platform we are building as the premier industrial services company. However, until we begin to see a sustained pattern of market normalization, we will continue to withhold earnings guidance for 2017.”
Price and Consensus Graph
As you can see in the graph below, the stock price has fallen of late, and future earnings estimates have also significantly declined.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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