Building services technology firm Somero Enterprises Inc (LON: SOM) have seen their share price dip in Friday morning trading after the company announced that it had downwardly revised its revenue and earnings guidance.
The Company, which manufactures machinery such as laser-guided hardware used in the process of horizontal concrete placement, said its earnings had been weighed down by record rainfall in the US, which had delayed project undertakings.
The US is the company’s largest market, and the adverse weather conditions pulled trading results for the five months through May 2019 below management expectations.
Net cash at the end of 2019 was now expected to be approximately 418 million, with revenue down to $87 million and Ebitda at around $28 million.
Somero Enterprises comments
“The record rainfall seen in the US has delayed project starts which in turn has slowed the pace of equipment purchased by our customers, the impact of which was seen through historically strong trading months of March and April,” Somero said in its statement.
“Whilst there was an improvement in trading to end the month of May, and although the company expects weather conditions and therefore trading in the US will improve throughout the rest of 2019, the board now does not expect the company to fully recapture the shortfall caused by this extended period of poor weather in the current financial year.”
The Company’s share price has dipped in Friday morning trading, down 21.13% or 75.02p to 279.98p per share. Analysts from finnCap have retained their ‘Corporate’ stance on Somero Enterprises stock.