Energy company Babcock & Wilcox Enterprises (BW - Free Report) closed down 21.2% Tuesday on news that it is restructuring its traditional power business. The move is coming in advance of a lower projection for coal generation in the U.S.
BW has updated their guidance to reflect decreased coal revenue and delayed Canadian oil sands revenue due to the Fort McMurray fires. BW is also expecting another delay in their new renewable energy plant in Europe which they discovered has a piping design error, pushing the building process back. The European plant delay will cost BW $32M in pretax charges.
The Charlotte, N.C. based company offers energy technology and services in nuclear, fossil and renewable energy markets. As per their official statement, BW is cutting 200 jobs in North America as part of its effort to reduce overhead and improve efficiency in response to projects that show coal utilization in the U.S. decreasing faster than initially projected.
BW expects severance expenses and other costs to total between $55M and $60M. Furthermore, they believe that their restructuring will offset the losses associated with decreased coal revenue.
There is currently 100% agreement in downward earnings estimate revisions for Q2, with the current Zacks Consensus Estimate at $0.33 per share. BW is averaging an average EPS surprise of -1.45%, with their most recent surprise at 8%.
Babcock & Wilcox currently sits at a Zacks Rank #3 (Hold).
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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.
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Energy company Babcock & Wilcox Enterprises (BW - Free Report) closed down 21.2% Tuesday on news that it is restructuring its traditional power business. The move is coming in advance of a lower projection for coal generation in the U.S.
BW has updated their guidance to reflect decreased coal revenue and delayed Canadian oil sands revenue due to the Fort McMurray fires. BW is also expecting another delay in their new renewable energy plant in Europe which they discovered has a piping design error, pushing the building process back. The European plant delay will cost BW $32M in pretax charges.
The Charlotte, N.C. based company offers energy technology and services in nuclear, fossil and renewable energy markets. As per their official statement, BW is cutting 200 jobs in North America as part of its effort to reduce overhead and improve efficiency in response to projects that show coal utilization in the U.S. decreasing faster than initially projected.
BW expects severance expenses and other costs to total between $55M and $60M. Furthermore, they believe that their restructuring will offset the losses associated with decreased coal revenue.
There is currently 100% agreement in downward earnings estimate revisions for Q2, with the current Zacks Consensus Estimate at $0.33 per share. BW is averaging an average EPS surprise of -1.45%, with their most recent surprise at 8%.
Babcock & Wilcox currently sits at a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free 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 >>
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