Tutor Perini Corp. missed Wall Street forecasts on net income in the second quarter and blamed the shortfall on the loss from a fixed-price contract at the Hudson Yards project in New York. In reaction, the company's share price dropped 15 percent.
The Sylmar construction company reported net income of $11.8 million (24 cents a share) for the quarter ended June 30, compared to $24.5 million (59 cents) for the same quarter last year. Revenue grew 21 percent to $1.31 billion.
Accounting for one-time adjustments, the company reported net income of 41 cents a share, still below analysts' average expectation of 53 cents on revenue of $1.24 billion, according to Thomson Financial Network.
“Net income for the second quarter was negatively impacted by a significant loss on the Hudson Yards 52-story Tower C concrete project,” the company said in a statement. “This loss, which amounted to an $8.7 million reduction in net income … was the first major loss for Tutor Perini on a fixed-price contract in the past 20 years.”
In addition to the loss at Hudson Yards, prolonged delays on the Alaskan Way Viaduct project in Seattle and a slow start to the California High-Speed Rail project also negatively impacted results, the company said.
The company reported results after market close Thursday. Shares closed Friday down $3.06 or 15 percent to $17.01 on the New York Stock Exchange.