Shares of Tutor Perini Corp. fell nearly 13 percent on Tuesday after the construction company reported a lower-than-expected second quarter profit and cut its full-year forecast.
After the markets closed on Monday, the Sylmar company cited a $356 million charge taken the quarter and delays in finalizing new contracts. The company now expects adjusted full-year earnings of between $1.50 and $1.70 a share on revenue of $4 billion to $4.5 billion. It earlier expected an adjusted profit of $2.10 to $2.30 a share on revenue of $4.5 to $5.0 billion. The Wall Street consensus is for earnings of $1.93 a share on revenue of $4.53 billion.
For the second quarter, the company reported a net loss of $348.4 million (-$7.35 a share), compared with net income of $19.7 million (41 cents) in the same period a year earlier. Excluding one-time items, such a $356 million impairment charge, the company earned 16 cents a share. Revenue rose 20 percent to $985 million.
Analysts expected 37 cents a share adjusted profit on revenue of $1.08 billion.
The charge was related to a write-down of the company’s goodwill and intangible assets to their fair value, the company said. Factors included a sustained decrease in the company’s stock price, deterioration in broader market conditions and delays in the timing of the award and start of new work.
The stock has fallen 35 percent from its 52-week high on Feb. 17. The Business Journal reported on July 30 that Chief Executive Ron Tutor in recent months has been selling shares to raise money for his film ventures, which has reduced his stake in the company to 18 percent from 43 percent in 2008.
Tutor in the earnings announcement noted that despite contract award delays, the company still has a backlog valued at $5.9 billion.
“Notwithstanding these negative conditions, we have been experiencing an unprecedented and highly encouraging inflow of large new work opportunities, particularly in our Civil Group, which we expect will provide stable profit and cash flow streams for the next several years,” Tutor said in a statement. “We are pleased with the strength of ongoing contributions from recent acquisitions, particularly in our Specialty Contractors segment.”
Shares closed down $1.45, or nearly 13 percent, to $9.92 on the New York Stock Exchange.