Shares of workforce accommodations and logistics company Civeo (CVEO 2.10%) fell as much as 14.2% on Thursday, following the company's first-quarter earnings report. The stock is down about 5% at the time of this writing.
The stock is likely down because the company's loss was wider than the consensus analyst estimate for the quarter. On average, analysts were expecting Civeo to report a loss per share of $0.12. But Civeo's actual loss per share for the quarter was $0.17.
Management explained the earnings miss:
First quarter earnings were modestly below our expectations, due to higher-than-expected stock-based compensation expense as a result of the year-to-date increase in our stock price and higher-than-expected labor costs in Canada.
Notably, though, Civeo's revenue was above both analysts' expectations and management's own expectations for the quarter. The higher-than-expected revenue was thanks to improved occupancy in Canada and Australia, management said.
Going forward, management said the company was "encouraged by the broadening stabilization" it's seeing in its core markets. As evidence of its improving market position, management points to its 15-month contract renewal at McClelland Lake Lodge in Canada as well as improving performance in its Australian and U.S. segments.
Further, management said it is "optimistic that demand for our services will continue to stabilize in 2017 and gradually improve over the medium to long term."