slashed its third-quarter estimates Wednesday, citing delays in certain military shipments, lower-than-expected spare parts volume and higher costs.
The company's shares recently were down $5.88, or 9.8%, to $54.
The maker of military vehicles and armor systems said it expects to post earnings of 55 cents to 65 cents a share, down from its earlier guidance of 75 cents to 80 cents. Analysts polled by Thomson First Call project earnings of 80 cents a share.
The company said the outlook primarily reflects the timing of revenue associated with ground vehicle supplemental armor programs and certain soldier equipment programs, both of which are now expected to ship in the fourth quarter and in 2007.
Results also were hurt by lower-than-expected spare parts volume and higher-than-anticipated ramp-up costs and manufacturing inefficiencies in expanding certain soldier equipment lines to meet increased production goals, Armor Holdings said.
The company is maintaining its forecast for the fourth quarter, taking into account the positive impact of the shipment delay and the offsetting effect of the lower volume and higher costs. For the full year, the company anticipates earnings of $3.55 to $3.65 a share, down from a prior guidance of $3.75 to $3.85. Wall Street expects earnings of $3.82 a share.