- Chicago Bridge & Iron (CBI -2.1%) is lower after reporting weaker than expected Q2 earnings and revenues, and issuing sharply lower full-year guidance.
- CBI now sees FY 2016 EPS of $4.70-$5.00 vs. $4.99 analyst consensus estimate and well below prior guidance of $5.00-$5.50, and predicts FY 2016 revenues of $10.6B-$11B vs. $11.42B consensus and below prior guidance of $11.4B-$12.2B.
- CBI's new awards for Q2 totaled $1.8B, compared with $2.8B for the year-ago quarter, and the company cuts its award guidance to $8B-$10B from $10B-$12B.
- Citi analyst Andrew Kaplowitz is surprised at the magnitude of CBI's guidance cut and continued weakness in bookings, but says the cash situation is a meaningful positive; the firm maintains a Neutral rating on the stock with a $38 price target.