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GulfMark Proft Misses Targets, Stock Falls

The oil services outfit sees revenue, earnings grow in the first quarter, but stock trades lower.

GulfMark Offshore


barely missed Wall Street profit targets for its first quarter, prompting shares in the company to drop 7% in afternoon trading Monday.

Excluding one-time charges, earnings for the period came in at $43.2 million, or $1.32 a share, a penny below analysts' estimates, according to Thomson Reuters, but up more than 25% from the year-ago period's $34.4 million. Revenue, meanwhile, rose 30.5% to $108.8 million from $83.3 million in the 2008 first quarter.

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The Houston shipping company, which services offshore oil rigs, recorded a huge charge in the quarter: $46.2 million before taxes, or $1.16 a share, which represents the full amount it had so far paid a shipyard for a contract to build three 245-foot boats for delivery in 2010. GulfMark pulled the contracts over purported construction delays.

Including the charge, which was previously announced, the company's net income was $14.2 million, or 56 cents a share.

GulfMark shares closed Monday at 26.83 down 9.24%, or $2.73.

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