Why Team 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 Team, were falling apart today, dropping as much as 18% after the maintenance provider cut its fiscal 2013 earnings guidance.
So what: Team cut its EPS outlook for the year from $1.90-$2.05, to $1.70-$1.85, and also revised its revenue guidance for the fiscal year ending May 31, 2013 down to $705 to $720 million. Analysts had projected EPS of $2.03 on sales of $732.5 million. Management said the revision was due to weak results in its third quarter, particularly poor sales from Canada and Europe. For the current quarter, management now expects break-even earnings on revenue of $150 million.
Now what: Team also curtailed its fourth-quarter revenue guidance by $10 million, but expressed long-term confidence in its business prospects. We'll learn more about Team's future when it reports earnings on April 2. If the current update turns out to be just a short-term concern, there could be significant upside potential. Check back after earnings are in. You can stay on top of Team by adding it to your Watchlist here.
The article Why Team Shares Dropped originally appeared on Fool.com.Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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