Global marketing supply chain company InnerWorkings Inc. (INWK) on Tuesday cut its full year 2013 outlook, citing a change in control at a large retail client that resulted in the decision to redirect a significant portion of work to a provider with an existing business relationship with the client's new management team.
The company said it now expects revenue of $900 million to $930 million and earnings of $0.45 to $0.50 per share for the full year 2013. Previously, the company expected full year revenue of $930 to $960 million and earnings of $0.57 to $0.61 per share.
Analysts polled by Thomson Reuters currently expect the company to earn $0.58 per share on revenue of $945.75 million for the full year 2013.
"While we are disappointed by the revenue loss from a major client, we understand this risk presents itself when a client undergoes a change in control. We look forward to continuing to deliver excellent service and savings for them, albeit in a new reduced role," said Eric Belcher, Chief Executive Officer of InnerWorkings. "Importantly, our new business pipeline remains strong and we fully expect to achieve our new business growth targets for the year."
InnerWorkings also said it expects to report first quarter 2013 revenue in the range of $204 to $207 million, and earnings in the range of $0.01 to $0.03 per share. Analysts currently expect the company to earn $0.09 per share on revenue of $218.29 million for the first quarter.
The company will announces its full first quarter 2013 results on May 9.
InnerWorkings shares are currently losing 19.81% in after hours trading after closing the day's regular trading session at $14.03, up 22 cents or 1.59%.
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