Why Willbros Group's Shares Dropped
May 9th 2013 5:15PM
Updated May 9th 2013 5:35PM
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of energy contractor Willbros Group fell 20% today after the company released earnings.
So what: First-quarter revenue jumped 30% to $487.4 million, which came in ahead of the $463.8 million estimate. But Willbros lost $11.6 million, or $0.24 per share, from continuing operations, far worse than an estimated $0.04 loss.
Now what: Most of the poor performance occurred in the oil and gas business where "project issues" and poor weather negatively affected income. This is a seasonally down quarter so the loss isn't terribly surprising but operational issues are concerning and this is the fourth earnings miss in the last five quarters. Until Willbros can swing to a strong and sustainable profit I'm not a buyer because management can't seem to control the bottom line.
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The article Why Willbros Group's Shares Dropped originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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