Team Inc. (TISI) announced it is lowering fourth-quarter earnings guidance to a range of $0.52 to $0.60 per share. The company said the revised guidance reflects lower expected profit margin performance than had been previously forecast due primarily to cost and utilization challenges in the quarter. Team Inc. previously expected profit per share in the range of $0.69-$0.84 for the quarter.
The company now expects fourth-quarter revenues to be in the range of $195 million-$200 million. The prior guidance for revenue was a range of $192 million-$207 million.
"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 Phil Hawk, Team's Chairman and CEO.
Analysts polled by Thomson Reuters expect the company to report fourth-quarter profit per share of $0.74. Analysts' estimates typically exclude special items.
The company said, based on its initial review and planning, current expectations for fiscal 2014 remain consistent with past performance. The company expects fiscal 2014 revenues of approximately $790 million and earnings of about $2.00 per share. Analysts currently expect the company to report fiscal 2014 profit per share of $2.24 on revenue of $789.17 million.
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