In the last trading session, the stock price of Babcock & Wilcox Enterprises Inc (NYSE:BW) declined more than 2% to close the day at $5.81. The decline came at a share volume of 1 million compared to average share volume of 2.70 million.
More recently, Babcock & Wilcox Enterprises reported that for Q3 2017 revenue came at $408.7 million, a drop of $2.3 million over Q3 2016. GAAP earnings a share came at $2.48 versus $0.18 in Q3 2016. Included in Q3 2017, GAAP earnings exhibited non-cash goodwill impairment charges of $1.86 per share. Adjusted earnings came at a loss of $0.49 per share for the quarter closed September 30, 2017 versus adjusted earnings $0.36 per share in the prior year period.
James Ferland, the CEO and Chairman of Babcock & Wilcox, reported that during the third quarter, the made considerable progress on their U.K. Renewable new-build assignments, and they continue to anticipate these projects to be considerably construction complete by 2018. Importantly, they were able to decide to design changes with numerous consumers that improve plant performance and largely counterbalance the financial influence of the boiler structural steel design concerns they identified in late September.
The CEO of Babcock & Wilcox added that they are driving cost-savings initiatives within their business divisions and in overhead-related activities, with a target of around $45 million in yearly savings, as they work to improve their international cost structure.
They closed third quarter in compliance with their financial covenants and expect that they will continue to be in compliance going forward. Along with that positive outlook, it will be wise that the company increase their financial optionality as it approaches closer to the completion of construction on their U.K. Renewable new-build assignments. With a promising outlook for their Universal and MEGTEC business lines, they are assessing strategic options for these businesses.