Monday, ENGlobal Corp. (ENG), a provider of engineering and professional services to the energy sector, reported a sharp drop in earnings for the first quarter, negatively impacted by reduced level of project activity.
The Houston, Texas-based company's net income for the first quarter dropped to $2.01 million from $4.00 million in the prior-year quarter. On a per-share basis, earnings declined to $0.07 per share from $0.15 per share last year.
On average, two analysts polled by Thomson Reuters expected the company to earn $0.13 per share for the first quarter. Analysts' estimates typically exclude special items.
Quarterly operating revenues decreased 5% to $93.50 million from $98.20 million in the same quarter of last year, short of analysts' consensus revenue estimate of $110.00 million for the quarter.
Segment wise, engineering segment revenue for the quarter decreased to $42.6 million from $52.0 million in the year-ago quarter, while construction segment revenues declined to $21.2 million from $26.9 million in the prior-year quarter. Automation revenues rose to $20.6 million from $10.4 million, while land revenues edged up to $9.1 million from $8.9 million in the same quarter of last year.
Consolidated gross profit margin for the quarter decreased to 11.2% from 14.6% in the year-ago quarter, primarily due to reduced level of performance in engineering segment.
ENG is currently trading at $5.20, down $0.80 or 13.33%, on a volume of 0.23 million shares on the Nasdaq.
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