Worley shares slide after flagging wider 2H earnings skew on one-off costs
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The news: Engineering group Worley’s share price fell around noon after flagging that its full-year earnings would skew “more heavily” to the second half of the year than seasonally expected, although it reiterated its full-year guidance.
The numbers: At 12:22pm AEDT, shares in Worley had slipped 4.8% to $13.00.
The context: While Worley’s earnings usually skew to the second half of the financial year, CEO and managing director Chris Ashton said that the company expects “earnings to be weighted more heavily to the second half”.
This primarily reflects one-off costs from restructuring company capability to “areas of higher demand” and to reduce the cost base. It also reflects the impact of non-material project cancellations.
UBS analyst Nathan Reilly also flagged that Worley’s guidance was “reiterated for moderate earnings growth on higher revenue/margin”. He said the earnings skew likely reflects an increase in “previously planned above the line one-off restructuring costs in 1H”.
The sources: ASX, UBS research
