Shares of McDermott International (MDR) - Get McDermott International, Inc. Report plummeted nearly 40.1% to $6.03 Tuesday after the engineering and construction company missed Wall Street's second-quarter revenue expectations and said it expects to report a full-year loss.
The Houston-based company reported a loss of $146 million, or 80 cents a share, compared with a profit of $47 million, or 33 cents a share, a year ago. The adjusted loss in the quarter was 7 cents a share. Analysts were calling for a loss of 8 cents a share.
Revenue totaled $2.14 billion, up from $1.74 billion a year ago, but short of Wall Street's call for $2.26 billion.
McDermott, which completed its acquisition of Chicago Bridge and Iron in May 2018, said it expects to report a full-year loss of $310 million, down from earlier guidance of a profit of about $170 million. The company is now calling for annual revenue of about $9.5 billion, down from the previously projected $10 billion.
David Dickson, president and CEO, said in a statement that the guidance was reduced due to the second quarter's weaker-than-expected results and the impact of reduced revenue and higher unallocated operating expenses due to slippage in certain new awards and customer changes to schedule on several projects.
In addition, Dickson said, the guidance was reduced due to changes in the company's assumptions about the expected performance of legacy CB&I projects in its North, Central and South America operating segment; and a shift from the fourth quarter to 2020 in the assumed timing of remaining incentives on the Cameron LNG project.
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