Tutor Perini Corp. missed Wall Street expectations on earnings, and the company put the blame largely on a legal judgment.
The Sylmar construction company reported net income of $19.7 million (40 cents a share) for the quarter ended Sept. 30, compared to $35.7 million (74 cents) for the same quarter last year. Revenues increased 7 percent to $1.34 billion.
Analysts on average expected net income of 78 cents a share on revenue of $1.44 billion, according to Thomson Financial Network.
The company said the decrease in net income for third quarter was principally the result of a litigation decision for $23.9 million. In a conference call, executives explained the case was the Vinci French company-sponsored joint venture that drilled a tunnel in Seattle.
Tutor Perini acquired Kemper-Frontier Constructors in 2011, and even though the company had completed the tunnel project by that time, Tutor Perini assumed liability. Litigation over the project continued, and the final appeal was turned down during the quarter. Tutor Perini has 25 percent of the liability.
“We are certainly disappointed with the outcome of the legacy litigation,” Chief Executive Ron Tutor said in a statement.
The company reported its results late Friday night. Shares closed Monday up 60 cents or 3.6 percent to $17.07 on the New York Stock Exchange.