Team Earnings: Here’s Why the Stock is Falling Now

Team Inc. (NASDAQ:TISI) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 8.75%.

Team Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 36.11% to $0.23 in the quarter versus EPS of $0.36 in the year-earlier quarter.

Revenue: Rose 7.93% to $174.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Team Inc. reported adjusted EPS income of $0.23 per share. By that measure, the company missed the mean analyst estimate of $0.36. It missed the average revenue estimate of $176.7 million.

Quoting Management: “We remain confident of our long-term growth and performance potential in spite of the near-term margin head-winds and the slow start for Quest. The initial $25 million stock repurchase program approved by our Board of Directors reflects this confidence,” said Phil Hawk, Team’s Chairman and Chief Executive Officer.

Key Stats (on next page)…

Revenue decreased 13.37% from $201.2 million in the previous quarter. EPS decreased 57.41% from $0.54 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.73 and has not changed. For the current year, the average estimate has moved down from a profit of $2.01 to a profit of $2.00 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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