This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Aegion Shares Tumble On Weak 1Q Forecast

NEW YORK (AP) â¿¿ Aegion's stock declined Thursday after the company said that its first-quarter earnings would widely miss expectations due to project delays linked to bad weather and the postponement of several contracts until later in the year.

THE SPARK: Aegion Corp. provides technology and services to help companies and cities protect against the corrosion of industrial pipelines and to repair and strengthen water, wastewater, energy and mining piping systems and buildings, bridges, tunnels and waterfront structures. The company said severe weather in Canada as well as the Midwest and eastern U.S. delayed some contracting and manufacturing jobs. And several domestic and international contracts for the energy and mining industries and commercial and structural segments that were expected to begin or be completed by the end of March have now been pushed later into the year.

The company also said that an unexpected slowdown in the pace of pipeline construction by the main contractor for the Tite Liner project in Morocco this month contributed to the lower-than-expected quarterly earnings, but that the lining work is still on track to be completed this summer. Because of these issues, Aegion is forecasting first-quarter earnings between 4 cents and 8 cents per share â¿¿ far below the 22 cents expected by analysts polled by FactSet.

THE ANALYSIS: President and CEO J. Joseph Burgess said the first quarter is typically Aegion's smallest, making up only about 10 percent of total earnings for the year, because of the likelihood of delays caused by weather and seasonal slowness for many of its businesses. He added that project timing had a disproportionate impact on the first quarter's earnings per share. But Burgess said he is confident in Aegion's ability to recover during the rest of the year from this unusually slow start, and reaffirmed full-year profit guidance in a range of $1.60 to $1.80 per share. Analysts have forecast earnings of $1.68 per share, on average.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,888.02 +83.22 0.47%
S&P 500 2,070.53 -0.12 -0.01%
NASDAQ 4,766.3340 +0.9540 0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs