Shares of Churchill Corp. (CUQ.TO: Quote) Monday plunged 29 percent on the Toronto Stock Exchange after the construction company's forecast of a loss for the second quarter. Analysts currently expect Churchill to report a profit for the quarter.
Calgary, Alberta-based Churchill said its second-quarter results were negatively impacted by "frequent rains," which reduced earnings at its Calgary Airport Runway project and a Saskatoon residential project.
Churchill now expects to report a net loss in a range of C$4.0 million to C$4.4 million and revenues of C$292 million to C$298 million. Analysts polled by Thomson Reuters currently expect earnings of C$0.16 per share on revenues of C$355.53 million for the quarter.
Broda Construction Inc., a component of Churchill's Industrial Services segment, expects to report a loss for the second quarter due to frequent rains. Stuart Olson Dominion Construction Ltd., Churchill's General Contracting segment, also expects to report a loss due primarily to delays in structural steel work, resulting in modifications to project schedule and execution causing additional costs to be incurred at the Investors Group Field project in Winnipeg, Manitoba.
Churchill does not generally give financial guidance to the capital markets. The information was provided because preliminary 2012 second quarter estimates are materially below the consensus estimates of financial analysts who offer research coverage on the corporation.
CUQ is currently trading at $8.40, down $3.44 or 29.05%, on a volume of 1.4 million shares.
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by RTT Staff Writer
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