Willbros Group Inc. (NYSE: WG) plans to report its 2Q2016 after the close of market on July 29. The management has scheduled a conference call to discuss the results and the future of the business on August 1. What should investors expect as Willbros reports another quarterly financial performance results?
There is a clue
During the release of the results for the previous quarter (1Q2016), Willbros Group Inc (NYSE:WG) only provided clear guidance for fiscal year 2016 but not 1Q2016. However, the management provided a hint about what investors can expect in the 2Q report.
The company’s CFO, Van Welch, said last quarter that they expected revenue and operating income before special items in 2Q to better than the numbers reported in 1Q. Willbros generated revenue of $199 million in 1Q2016 compared to $250.4 million in the comparable quarter a year ago. It logged an operating loss before special items of $9.5 million in 1Q2016 compared to $21.3 million in the year ago quarter.
Coming to the bottom-line, Willbros Group Inc (NYSE:WG) posted EPS loss before special items of $0.16, significantly better than EPS loss of $0.57 a year earlier and $0.28 in the prior quarter.
Willbros guided for 2016 in the band of $825 to $900 million.
Therefore, going by the management’s comments regarding 2Q relative to 1Q, you can expect the company to continue narrowing its operating loss before special items or swing into operating profits.
Willbros Group Inc. (NYSE: WG) inclusion in Russell 3000
Willbros Group Inc. (NYSE: WG) is preparing to release 2Q2016 results at a time when it is also celebrating its inclusion in Russell indexes. The company is among those that have joined the broad market Russell 3000 Index and Russell 2000 for small-cap following the reconstitution of Russell US indexes.
The inclusion of Willbros in the indexes is expected to increase the company’s exposure to potential investors. Russell indexes are used as active benchmarks for institutional investors and investment managers.
As a player in the energy sector, Willbros Group Inc. (NYSE: WG) is one of those companies hoping to benefit from recovery in oil prices.