Savvy Trades and Investments

[gilead23]

NOA they indicated temporary factors last quarter too. That seemed plausible at the time because there really were crazy rains in Australia. In this case though you had the contractor issue in Australia and this bit which sounds to me like they had overstated earnings on the fargo project. 

"Adjusted EPS for the second quarter fell short of expectations largely due to the same issues impacting gross profit, along with a $7.7 million cumulative catch-up reduction in equity earnings. This adjustment is a one-time item arising from the settlement of a claim and a subsequent forecast revision for the Fargo project, resulting in a true-up to the forecast margin percentage.”

And now they have problems in Canada with a reduced earnings outlook. Thats just a whole lot of coincidences stacked on coincidences. Bottom line it sounds like they are simply executing poorly ie bad management.