Bowman Consulting Group Shares Drop After Disappointing Full-Year Results
Shares of Bowman Consulting Group took a hit on Friday after the company issued a warning that its full-year results were expected to fall short of guidance. The stock dropped 8.8% to $33 in after-hours trading, following a 2.7% decline at the close of the market. Despite a modest gain of less than 2% since the beginning of the year, the engineering services firm based in Reston, Va. experienced a significant downturn.
Bowman Consulting Group revealed on Friday that it anticipated net service billings, a key revenue metric that excludes sub-consultant and other direct expenses, to come in below guidance based on preliminary results. The company cited a sizeable seasonal impact on utilization in December as the main factor affecting its performance. For 2023, Bowman expects net service billings to reach approximately $303 million, falling short of its previously anticipated range of $306 million to $312 million. Furthermore, the company now projects adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) to range between $44.5 million and $46 million, below its initially stated full-year guidance of $48 million to $52 million.
Investors will have to wait until March 11 for Bowman Consulting Group to provide a comprehensive report on its full fiscal fourth-quarter results. Until then, it remains to be seen whether the company will be able to bounce back from this disappointing announcement.
Analyst comment
Negative news. The market is expected to react negatively to Bowman Consulting Group’s warning of full-year results missing guidance and a decrease in stock price. The market may continue to decline as investors respond to the lower revenue and adjusted Ebitda projections.
