NCI Plunges as Revenue Forecast Falls Short: Washington Mover
NCI Inc. (NCIT), a technology contractor to the federal government, fell as much as 33 percent in New York for the biggest intraday drop since August after forecasting revenue that trailed analysts’ estimates.
The scope of some orders has been reduced and a “high number” of contract awards are under protest, the Reston, Virginia-based company said in a statement yesterday. Sales will total $340 million to $360 million in 2012, missing the $510.8 million average estimate of 11 analysts in a Bloomberg survey.
“An unfavorable competitive environment, pricing pressures and delayed or canceled procurements” contributed to the shortfall, President Brian J. Clark said in the statement.
NCI also expects restructuring costs of 11 cents to 14 cents a share from 2011 for job cuts and ending or renegotiating leases on buildings. About 60 indirect NCI employees or consultants are being cut, the company said.
The stock dropped 29 percent to $8.10 at 10:14 a.m. on the Nasdaq Stock Market and earlier plunged as low as $7.70. The shares lost almost half their value last year.
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