Specialty industrial service provider Team Inc. (TISI), Monday slashed its fourth-quarter earnings outlook, citing lower-than-expected profit margin performance due to cost and utilization challenges. As well, the company also lowered its revenue outlook for the fourth quarter.
Following the announcement, Team shares tumbled 16 percent in afternoon trade on the New York Stock Exchange.
Team provides services, including inspection and assessment, required in maintaining and installing high-pressure piping systems and vessels that are utilized in energy and other heavy industries.
The Houston, Texas-based company now expects fourth-quarter earnings of $0.52 to $0.60 per share, down from its prior range of $0.69 to $0.84 per share.
On average, seven analysts polled by Thomson Reuters currently expect earnings of $0.74 per share for the quarter. Analysts' estimates typically exclude special items.
The company now expects fourth-quarter revenue in the range of $195 million to $200 million, compared to its prior range of $192 million to $207 million.
Five analysts on consensus, currently anticipate revenues of $202.62 million for the fourth quarter.
"While our projected revenues for the fourth quarter will be within the previously issued range, overall gross margins are projected to be approximately two percentage points below our previous expectations for the period," said CEO Phil Hawk.
Key challenges in the quarter included slower revenue growth rates, reflecting fewer large turnaround projects; cost/utilization imbalances arising from an increase in field support resources; and longer time taken to restore historical operating efficiency levels.
In March, the company had cut its 2013 outlook, citing weak third-quarter revenues from its Canadian and European operations.
Team's outlook for fiscal year 2014 remains consistent with past performance, with the company expecting earnings of $2.00 per share on revenues of about $790 million.
Analysts currently expect earnings of $2.24 per share on revenues of $789.17 million for 2014.
The company's stock is trading at $35.30, down $6.95 or 16.45%, on a volume of 600 thousand shares.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.