Income Report / WorleyParsons Limited

By Market Matters 24 November 13

WorleyParsons Limited

Another significant downgrade for the mining services
  • WorleyParsons Ltd. (WOR.AU), which provides engineering services to the energy and mining sectors updated its investors with their 1H 2014 underlying net profit of A$90M-A$110M.
  • This compares to the increased earnings on its 2013 net profit of $322 million it predicted at its last annual general meeting in October. 
  • This is both very disappointing on a downgrade front and timing, how can so much change in a few weeks?
  • Simply put, if a company has guidance wrong by 50% only 6 weeks after an AGM, I have no interest in being an investor.
  • Also, most stocks that have big downgrades usually go on to experience further downgrades, sell or leave alone.

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