Barnes Group, a leading provider of engineered products, industrial technologies, and solutions, experienced a steep decline in its stock price, dropping by 25% to $22.51. This comes after the company reported a loss in its latest quarter and adjusted its 2023 outlook.
In the third quarter ending September 30, Barnes Group posted a loss of $21.7 million, or 43 cents per share. This is in stark contrast to the net income of $17 million, or 33 cents per share, that the company recorded during the same period last year. Adjusted earnings were reported at 19 cents per share, falling short of analysts’ estimates of 48 cents per share.
Despite the disappointing financial results, Barnes Group saw a 15% increase in sales, with revenue amounting to $361 million compared to $314.7 million in the previous year. However, this figure still fell short of expectations from analysts, who anticipated sales to reach $364.2 million.
To make matters worse, Barnes Group revised its outlook for 2023. Instead of the originally projected organic sales growth of 7-9%, the company now expects growth of only 5-6%. Additionally, adjusted earnings per share are anticipated to fall within the range of $1.57 and $1.67, down from the previous forecasted range of $2.15 and $2.30.
The main factors contributing to this downward revision are the effects of Barnes Group’s recent MB Aerospace acquisition and a lower industrial forecast.
It remains to be seen how Barnes Group plans to address these challenges and restore investor confidence as it navigates a challenging business landscape.
