Team Inc. (NYSE:TISI) Stock Sees Heavy Selling Pressure After Quarter Earnings

Team Inc. (NYSE:TISI) stock dropped 45% on Friday after the company announced its financial results for the third quarter ending September 30, 2021.

Market Stats

On Friday, TISI stock slumped 46% at $1.46 with more than 9.27 million shares, compared to its average volume of 882K shares. The stock has moved within a range of $1.3900 – 1.7900 after opening trading at $1.77.

Earnings Recap

CEO Amerino Gatti said its topline missed expectations because of a range of factors that affected Q3 performance, including irregular market recovery, challenging market dynamics, and weather-related interruptions. The Inspection and Heat Treating segment grew 5% YoY, but the Quest Intergtirty and Mechanical Services segments experienced several project delays. Gatti added that performance was also affected by delays to the start of the fall turnaround projects and electricity outages along the Gulf Coast due to Hurricane Ida.

During the quarter, the company faced margin pressure due to inflationary costs in various areas like transportation and raw materials and increased costs related to improving technical training and hiring programs. In addition, the company absorbed higher expenses associated with temporary cost actions elimination that was put in place in March last year. So, in the coming weeks, investors should watch TISI.  

Key Quote

“Our top line results failed to meet expectations due to a combination of factors that impacted our third quarter performance, including weather-related disruptions, challenging market dynamics, and an uneven market recovery,” said Amerino Gatti, TEAM’s Chairman and Chief Executive Officer. “While the Inspection and Heat Treating (IHT) segment delivered 5% year-over-year revenue growth, the Mechanical Services (MS) and Quest Integrity segments experienced numerous project delays. Our performance was also impacted by a delayed start to our fall turnaround projects and power outages along the Gulf Coast from Hurricane Ida, forcing refining and petrochemical facilities offline.

Traders Corner

TISI stock is trading below the 20-Day and 50-Day Moving averages of $2.61 and $3.08  respectively. Moreover, the stock is trading below the 200-Day moving average of $7.13. The stock is down 47% in the past month.