Why Team, Inc. Stock Just Crashed 28.5%
Shares of Team, Inc. (NYSE: TISI), a provider of industrial quality testing services, fell 30% in early Tuesday trading before clawing back to a 28.5% loss as of 12:35 p.m. EDT.
Two news items are noteworthy here. First and foremost, Team released "preliminary" financial results for its fiscal second-quarter 2017 last night. Revenues, it appears, are likely to come in at approximately $310 million, down 8% year over year, and management is expecting to book an operating loss of between $7 million and $9 million.
Team blamed an "ongoing weak and uncertain macro environment in the industries in which we operate" for the "disappointing" results. Management said it will reduce "discretionary spending" and also "the overall cost structure of the Company" to try to navigate this "sluggish" business environment. Team will also be laying off "certain" employees, involving severance costs of between $4 million and $6 million, and necessitating charges to earnings during the upcoming third fiscal quarter.
Source: Fool.com
