Why Willbros Group's Shares Dropped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of energy contractor Willbros Group (NYSE: WG  ) fell 20% today after the company released earnings.

So what: First-quarter revenue jumped 30% to $487.4 million, which came in ahead of the $463.8 million estimate. But Willbros lost $11.6 million, or $0.24 per share, from continuing operations, far worse than an estimated $0.04 loss.  

Now what: Most of the poor performance occurred in the oil and gas business where "project issues" and poor weather negatively affected income. This is a seasonally down quarter so the loss isn't terribly surprising but operational issues are concerning and this is the fourth earnings miss in the last five quarters. Until Willbros can swing to a strong and sustainable profit I'm not a buyer because management can't seem to control the bottom line.

Interested in more info on Willbros Group? Add it to your watchlist by clicking here.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2421705, ~/Articles/ArticleHandler.aspx, 11/29/2014 12:30:49 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement