=Babcock & Wilcox (BW) : provides Q1 update, withdraws 2018 guidance for the Renewable segment

Babcock & Wilcox Enterprises also announces CFO retirement with Q1 update, withdraws 2018 guidance for the Renewable segment  

• Effective March 21, 2018, the co appointed Robert Caruso, Director of Alvarez & Marsal N Am, to serve as Chief Implementation Officer. CFO Jenny Apker will retire as CFO on June 1, 2018 for health-related reasons. Apker is expected to continue to work as a non-executive employee until August 31, 2018 to assist in the CFO transition. Joel Mostrom, a Senior Director of Alvarez & Marsal North America will assume the role of interim CFO on June 1, 2018. B&W expects to begin a search for a permanent CFO in the second half of this year.
• Q1/2018 update: As B&W has worked to progress its Renewable energy projects in Europe, management, with review from the Chief Implementation Officer, preliminarily identified ~$51 million of additional estimated costs to complete the projects. The largest portion of the additional estimated costs are related to the project with the previously announced steel beam failure. Co intends to seek not only insurance recoveries, but also plans to seek additional relief from its customers and will pursue other claims where appropriate and available. There can be no assurance as to recovery amounts that B&W may realize. The $51 million of additional renewable project costs do not take into account any potential recoveries to mitigate these losses.
• Given additional costs, B&W is withdrawing its 2018 guidance for the Renewable segment and is updating its 2018 consolidated adjusted EBITDA guidance of $20-40 million. Beginning with Q1 release, co will provide segment level EBITDA that will allow investors to better assess segment performance.
• B&W continues to make progress with the possible divestitures of its MEGTEC and Universal businesses. In addition, the Company continues to evaluate potential options regarding non-core assets.

=Babcock & Wilcox (BW) reported earnings on Thur 1 March 2018 (a/h)

Babcock & Wilcox Enterprises misses by $0.89, misses on revs; guides FY18 revs above consensus 

• Reports Q4 (Dec) loss of $0.95 per share, excluding non-recurring items, $0.89 worse thanthe Capital IQ Consensus of ($0.06); revenues rose 7.4% year/year to $408.1 mln vs the $432.71 mln Capital IQ Consensus.
• Co issues in-line guidance for FY18, sees FY18 revs of $1.5-1.7 bln vs. $1.56 bln Capital IQ Consensus Estimate.
• "Our progress toward completion of the Renewable projects and ongoing initiatives to improve our global cost structure and business mix positions us well for improved financial results in 2018 and beyond," said Leslie Kass, President and Chief Executive Officer. "We are making substantial progress on the construction of the U.K. Renewable new-build loss projects. Three of the projects are on track to be construction complete in first half 2018, with two of the projects currently in start-up commissioning phases, and despite incremental delays at one project resulting from the steel beam issue identified in late September 2017, construction is expected to be complete by the end of the year. While these delays increased our estimated costs to complete the projects, we expect to be able to offset some of these costs through agreements with our customers for bonus opportunities and liquidated damage relief in 2018."

This week's biggest % winners & losers : Sept 11 - 15, 17 (wk 37)

The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

• Healthcare:HALO(16.25 +23.95%)
• Materials:SQM(58.06 +19.86%),FTK(5.7 +18.75%)
• Industrials:BLDP(4.43 +33.03%), BW(3.55 +28.62%)
• Consumer Discretionary:NCMI(6.87 +33.4%),AMC (16.95 +26.97%), TLRD(14.55 +19.36%),BZH(17.61 +18.75%),PIR(5.2 +18.18%)
• Information Technology:UCTT(26.96 +20.84%),CSOD(41.07 +19.81%),BZUN(37.7 +19.46%)
• Financials:HRTG(12.87 +37.35%),UVE(21.25 +19.05%)
• Energy:REN(30.11 +24.01%),TTI(2.49 +21.46%),CRZO(13.78 +21.09%),EMES(7.93 +20.7%)
• Telecommunication Services: I (4.64 +17.47%)

This week's top 20 % losers

• Healthcare:ADXS(4.81 -35.09%),SAGE(62.36 -28.32%),NLNK(12.67 -28.3%),GKOS(31.4 -25.24%),ACHN(3.7 -24.64%),CRIS(1.72 -20.37%),ICPT(94.88 -18.84%),LXRX(12.37 -16.02%),BEAT(32.7 -14.95%),HZNP(12.11 -12.44%),BCRX(5.15 -11.97%)
• Materials:AGI(7.4 -12.43%),USCR(70.7 -11.4%),CSTM(9.7 -10.6%),CLF(7.13 -10.43%)
• Industrials:EFX(92.98 -24.55%),TRU(41.61 -12.4%),HTZ(20.57 -11.26%)
• Consumer Discretionary:IRBT(79.81 -16.14%)
• Information Technology:VDSI(11.05 -10.53%)

Babcock & Wilcox (BW): +24% (9/17)

Nuclear power company

• Headquarters: Charlotte, NC
• Founded in 1867
• Revenue: 1.6 billion USD (2015)
• babcock.com
• Number of employees: 5,700 (2016)
• Founder: George Herman Babcock
• On August 2, 2010, B&W began trading on the New York Stock Exchange as BWC.
• On July 1, 2015, Babcock & Wilcox and BWX Technologies, its former parent, began trading separately.
• The new B&W has its headquarters in Charlotte, which was the home of Babcock & Wilcox before the spinoff. BWX Technologies (NYSE:BWXT) is based in Lynchburg, Va.

a)  Sept 12:  #6, 7, 8,  vol. 2.5M   →     +24%
b)  Sept 13:  #6,  97  vol.  4.1 M   →     +15%

  

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