NEW YORK (TheStreet) -- McDermott International (MDR) is plummeting in extended trading after fourth-quarter net income and sales came in well below analyst consensus and management suspended guidance for the foreseeable future until it can implement organizational changes.
After the bell, shares had taken off 8.8% to $7.40.
The engineering and construction specialist for the oil industry reported a net loss of $1.37 in the three months to December. Analysts surveyed by Thomson Reuters had forecast net profit of 15 cents a share.
Revenue of $517.33 million was 48.1% lower than a year earlier and missed consensus by $308.3 million.
"Although the company's fourth quarter results are disappointing, we are taking the right steps to stabilize the business and drive long-term growth, profitability and shareholder value creation as a leading global offshore and subsea contractor," said CEO David Dickson in a statement.
"McDermott is at a strategic inflection point, and we are making good progress toward improving our internal processes and risk management."
Dickson recently assumed the role of president and CEO in mid-December last year. He had previously held the role of chief operating officer since October.
The company also said it was withdrawing prior financial guidance and suspending future guidance for the time being until organizational changes are made and legacy projects have been closed out.
Must Read: Warren Buffett's Top 10 Dividend Stocks
TheStreet Ratings team rates MCDERMOTT INTL INC as a Sell with a ratings score of D+. The team has this to say about their recommendation: