Team Inc. reports weak 3Q, cuts outlook

Pipeline leak repair company Team Inc. said Tuesday that third-quarter net income fell 24 percent due to weak demand from customers, and it cut its outlook for the year.

Net income in the three months to Feb. 28 dropped to $2.2 million, or 11 cents per share, from $2.9 million, or 15 cents per share, in the prior year.

Revenue fell 4 percent to $104.3 million from $108.8 million.

Team said it booked a one-time charge of $400,000 in the third quarter related to eliminating 60 sales and support positions. The move is expected to save $6 million annually.

Analysts surveyed by Thomson Reuters expected earnings of 13 cents per share on revenue of $115 million. The estimates typically exclude one-time items.

Shares jumped $1.13, or 10.7 percent, to close at $11.72 Tuesday before the earnings announcement.

The company said it cut its revenue outlook for the year by $20 million to about $500 million, implying fourth-quarter sales of $120 million, down about 17 percent from the previous year.

Team said it now expects full-year earnings of $1.05 to $1.20 per share.

"The uncertainties facing our end markets have never been greater," said Chief Executive Phil Hawk, in a statement. "However, we are reacting quickly to the rapid and evolving changes in near term demand."