Tutor Perini Corp.’s stock tanked Friday after the company announced it expects to significantly miss its revenue and earnings guidance for last year.
The Sylmar construction firm said that based on preliminary estimates, it expects 2015 revenue of $5 billion, down from prior guidance of $5 billion to $5.5 billion, and earnings per share to be 85 cents to 90 cents, compared to its previous guidance of $1.90 to $2.10.
The news sent shares cascading down 16.7 percent in Friday trading to close at $10.68.
Going forward, Tutor said it expects preliminary guidance for 2016 to be $5.1 billion to $5.6 billion with earnings per share expected at $1.90 to $2.20.
“While we are very disappointed with the various issues that impacted our 2015 results, we believe they are behind us and are very encouraged by the favorable outlook for growth and profitability in 2016,” Chief Executive Ronald Tutor said in a statement.
Tutor attributed the anticipated declines to project-related charges at its wholly owned subsidiary, Five Star Electric Corp., and a lawsuit-related court decision that occurred in the third quarter. That decision, which Tutor recorded in its third-quarter report, cost the company $14 million in net income, according to the report. It also reported it as a pre-tax charge of $23.9 million, during that quarter.
The company expects to report its 2015 results on Feb. 24.