Gulf Island Fabrication (GIFI) Misses Q2 EPS by 55c, Blames Pricing Pressure And Weak Demand For The Losses

Gulf Island Fabrication (NASDAQ: GIFI) reported Q2 EPS of ($0.73), $0.55 worse than the analyst estimate of ($0.18). Revenue for the quarter came in at $45.9 million versus the consensus estimate of $40.75 million.

Kirk Meche, the Company's CEO and President, commented, "Results for the second quarter of 2017 are reflective of contract losses of approximately $10.2 million as a result of rework performed and revised estimates to complete two vessel construction projects we assumed as part of our shipyard asset acquisition in 2016. Additionally, competitive pricing pressures and the continued weakness in demand from our traditional markets in offshore oil and gas contributed to our losses. Finally, we incurred holding costs of $1.2 million during the quarter related to our South Texas facilities which are for sale. Year-to-date holding costs in South Texas were $2.5 million plus another $1.9 million in depreciation which was incurred during the first quarter."

For earnings history and earnings-related data on Gulf Island Fabrication (GIFI) click here.

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