Mullen Falls After Quarterly Earnings Miss Estimates
Mullen Group Ltd. (MTL) fell the most in more than three years after the Canadian trucking and oilfield- services company missed fourth-quarter estimates and was downgraded by Raymond James Ltd.
The shares dropped 4.4 percent to C$21.98 at 11:06 a.m. in Toronto after declining as much as 8.3 percent, the biggest intraday tumble since July 13, 2009. The Okotoks, Alberta-based company had gained 15 percent in the 12 months through yesterday.
Mullen Group yesterday reported adjusted earnings per share of 34 Canadian cents (33 cents), missing the 38-cent average of 10 analysts’ estimates compiled by Bloomberg. The shares were cut to underperform, the equivalent of a sell, by Raymond James.
“Our feeling is that consensus Ebitda and earnings expectations are too high,” Andrew Bradford, a Calgary-based analyst for Raymond James, wrote in a note to investors today. “We believe the stock is likely to retrace its recent gains.”
Mullen Group’s oilfield services sales and earnings before interest, taxes, depreciation and amortization didn’t keep pace with rising rig counts in the quarter, Bradford wrote.
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