NEW YORK – Shares of Shimmick Corporation (NASDAQ:SHIM) plummeted 31% on Friday after the water infrastructure company reported disappointing second quarter results and provided weak guidance.
Shimmick posted a Q2 adjusted loss of $1.60 per share, far worse than analyst expectations for earnings of $0.12 per share. Revenue came in at $91 million, well below the consensus estimate of $175.65 million.
The company’s results were negatively impacted by a $30 million net loss on a legacy project settlement, which included a $23 million reduction to revenue. Excluding this impact, Shimmick Projects revenue was $84 million in Q2, down from $103 million in the year-ago quarter.
“With our transformation plan progress, the previously announced sale of the assets of the foundation business, the sale-leaseback of the equipment yard, and the Legacy Loss Project claim settlement, we have made progress to a more capital light focused business focused on capturing the growth opportunity in the California water and critical infrastructure market,” said CEO Steve Richards.
For fiscal 2024, Shimmick now expects Shimmick Projects revenue to remain generally flat year-over-year with gross margin between 4-9%. The company also forecast Legacy Projects revenue of $55-65 million with a negative gross margin of 80-90%.
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