Shares of McDermott International Inc. fell by over 10% Tuesday on higher than average volume.
The stock is now down about 14% since March 24.
It closed on the New York Stock Exchange Tuesday at $7.03 and opened a penny lower on Wednesday.
The Houston-based EPIC contractor said Monday it expects only low-single-digit percentage operating margins on the projects it has in its current backlog.
According to the Motley Fool, the company said operating margins “will be insufficient to cover restructuring costs or fixed costs associated with the contracts.”
Analysts expect McDermott to produce 17% lower total revenue for the quarter.
McDermott currently has $149 million in new orders booked during the first quarter.
“[S]hareholders have to be concerned” about whether McDermott can even hit that revenue target, the Motley Fool said.
McDermott announced a $500 million offering of hybrid equity and debt recently that also “left with a lot of uncertainty about the future,” the report said.
In August last year, McDermott reported an annual loss of about $150 million,
In October, the company David Dickson as the new CEO.
Dickson, 45, formerly served as president of Technip USA Inc.