NEW YORK (TheStreet) -- Shares of Babcock & Wilcox Co. (BWC) are falling by -7.77% to $28.50 in mid-afternoon trading on Thursday, after the company reported a drop in net income to $26.4 million, or 24 cents per share for the 2014 second quarter, compared to $72.9 million, or 65 cents per share for the year ago period.

The nuclear components manufacturer said revenue declined 22.6% to $686 million from the 2013 second quarter.

Babcock & Wilcox's profit fell this quarter as a result of higher operating expenses as the company is looking towards further geographical expansion and lowers its dependence on coal, Market Watch reported.

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The company also lowered its full year earnings guidance to between $1.70 and $1.85, with revenue expected between $2.9 billion and $3 billion.

Previously Babcock guided for earnings of $2.00 to $2.20 on revenue of $2.9 billion to $3.1 billion.

TheStreet Ratings team rates BABCOCK & WILCOX CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate BABCOCK & WILCOX CO (BWC) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

You can view the full analysis from the report here: BWC Ratings Report

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