Chicago Bridge & Iron , a Zacks Ranked #5 (Strong Sell) designs, builds, repairs, and modifies steel tanks and other steel plate structures and associated systems. The Company designs and builds petroleum terminals, refinery pressure vessels, low temperature and cryogenic storage facilities and elevated water storage tanks for clients internationally.
Recent Earnings Report
The company recently reported Q2 2017 earnings where they significantly missed both the Zacks consensus earnings ($0.85 estimate vs. -$2.96 actual), and revenue ($2.44 billion estimate vs. $1.283 billion actual) estimates. The company saw revenues decline year over year (YoY) by -41%, reported a net loss of $304.1 million compared to a net gain of $115.6 million in Q2 16, net awards fell by -15.4% YoY, and backlogs were reduced by -7.5% YoY.
Due to the poor performance management has suspended their dividend payments, begun a $100 million dollar cost reduction program, and is in the process of attempting to sell their Technology business. Further, due to the issues facing the company management reduced their second half revenue guidance to a range between $3.7 and $4.0 billion and diluted earnings per share in the range of $1.00 to $1.25.
Management’s Take
According to Patrick K. Mullen, President and CEO, “Although our second quarter results are disappointing, we are taking decisive actions to improve our operating performance and strengthen the company's financial position. We have initiated a comprehensive cost reduction program and suspended our dividend. We are injecting additional rigor and discipline into our execution and risk management processes, further strengthening the integration between our E&C and Fabrication Services operating groups, and accelerating the implementation of innovative practices and technologies. We remain committed to our integrated self-perform model, which we believe will enable us to generate attractive earnings and cash flows over time.”
Price and Earnings Consensus Graph
As you can see in the graph below, the stock price and future earnings estimates have declined after this recent earnings report.
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Chicago Bridge & Iron , a Zacks Ranked #5 (Strong Sell) designs, builds, repairs, and modifies steel tanks and other steel plate structures and associated systems. The Company designs and builds petroleum terminals, refinery pressure vessels, low temperature and cryogenic storage facilities and elevated water storage tanks for clients internationally.
Recent Earnings Report
The company recently reported Q2 2017 earnings where they significantly missed both the Zacks consensus earnings ($0.85 estimate vs. -$2.96 actual), and revenue ($2.44 billion estimate vs. $1.283 billion actual) estimates. The company saw revenues decline year over year (YoY) by -41%, reported a net loss of $304.1 million compared to a net gain of $115.6 million in Q2 16, net awards fell by -15.4% YoY, and backlogs were reduced by -7.5% YoY.
Due to the poor performance management has suspended their dividend payments, begun a $100 million dollar cost reduction program, and is in the process of attempting to sell their Technology business. Further, due to the issues facing the company management reduced their second half revenue guidance to a range between $3.7 and $4.0 billion and diluted earnings per share in the range of $1.00 to $1.25.
Management’s Take
According to Patrick K. Mullen, President and CEO, “Although our second quarter results are disappointing, we are taking decisive actions to improve our operating performance and strengthen the company's financial position. We have initiated a comprehensive cost reduction program and suspended our dividend. We are injecting additional rigor and discipline into our execution and risk management processes, further strengthening the integration between our E&C and Fabrication Services operating groups, and accelerating the implementation of innovative practices and technologies. We remain committed to our integrated self-perform model, which we believe will enable us to generate attractive earnings and cash flows over time.”
Price and Earnings Consensus Graph
As you can see in the graph below, the stock price and future earnings estimates have declined after this recent earnings report.
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 >>