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GR Engineering Services Ltd share price tumbles on earnings downgrade

The GR Engineering Services Ltd (ASX: GNG) share price has been one of the worst performers on the market today.

In early afternoon trade the engineering company’s shares are down almost 6% to $1.38.

What happened?

This morning GR Engineering Services announced a revision to its expected earnings for the financial year ending 30 June 2017.

According to the release, due to departures from anticipated progress claim timing on recently awarded projects, the company expects FY 2017 revenue to be in the range $215 million to $220 million.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) is expected to be in the range of $16 million and $17 million.

This will be a big drop from FY 2016 which saw the company deliver EBITDA of $26.1 million on revenues of $255.3 million.

Management does expect things to pick up in FY 2018 and has forecast revenue in the range of $300 million and $330 million.

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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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