SembMarine drops 5.5% to $4.43 in a sharp knee-jerk reaction to its 3Q12 net profit dropping 48.1% on-year to $115.5 million on lower revenue recognition from rig-building projects, coming in below several analysts’ forecasts.
“It’s not just the earnings. It’s probably the outlook as well,” says Jason Saw, an analyst at OSK-DMG. “It’s not as strong as I expected,” he says. “Margins actually for the current quarter were in line, but the forward guidance was weaker than I expected as well,” he says. “I don’t see any catalyst.”
Orderbook quotes suggest the $4.33 intraday low, the lowest since June 8, likely won’t be retested. Volume is strong, accounting for about 4.3% of shares changing hands on the SGX. Parent Sembcorp is down 3.5% at $5.19; SembMarine accounted for more than 50% of Sembcorp’s FY11 net profit.
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