Among the companies Team serves are refiners, pipeline and oil field services firms. The company said the estimate cuts are the result “primarily of cost and utilization challenges in the quarter.”
The issues appear to be local to Team, and not applicable generally to the industry. The company added more resources than it could effectively utilize in the quarter. Team said its lower revenue growth reflected fewer large turnaround projects, presumably in the refining sector.
Team now expects earnings per share (EPS) of $0.52 to $0.60. In March the company guided EPS at $0.69 to $0.84. The consensus estimate had called for EPS of $0.74.
The previous revenue estimate of $192 million to $207 million also has been narrowed, to $195 million to $200 million. Gross margins are expected to fall 2%.
Saying that the firm will issue 2014 fiscal year guidance in August, Team did offer guidance based on its initial review. The company expects 2014 revenues of $790 million and EPS of about $2.00 a share. The consensus estimates call for EPS of $2.24 on revenues of $789.17 million.
Shares are down more than 16%, at $35.32 in a 52-week range of $24.95 to $46.66.
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