Willbros Group Inc (NYSE:WG) understands that its shareholders want to see the business growing and improving their value in it. That is why the company is almost all over the map trying to prepare the ground so that it can hit the road running next year. At a recent conference call, the top management of Willbros Group left no doubt about their efforts to take the performance of the company to the next level. Of course, where there is a will there is a way.
Why are analyst so optimistic about WG?
Progress highlighted
On December 16, Willbros Group Inc (NYSE:WG) held a conference call to discuss 3Q2014 earnings and the state of the company as well as the condition of the market. Several issues came up at the earnings call, but some matters featured more prominently. For example, The company’s President and CEO, John McNabb, highlighted the progress they have made to improve performance and shareholder value.
The CEO stated that their efforts to boost performance are on course, and they love what is already happening. He said that they have been expanding their geographic footprint and also investing in employees and technology. Such efforts have contributed to the growth in the company. He singled out operating margin that has increased over what they had in 2013, and he hopes to make further gains in operating margins in 2015.
According to the CEO, the company has witnessed overall revenue of $1.6 billion and operating income of $12.3 million for the initial nine months of 2014. He attributed that to the many changes that they have made in their system.
Refinancing deal
On December 15, Willbros Group Inc (NYSE:WG) updated on a refinancing deal in the form of a new term loan. The company said that a private lender stepped forward to help with its refinancing needs. It expects the funds from the deal to finance is operations and also eliminate all its existing debts. Such a move is expected to firm up the company’s balance sheet and put it on the right path to growth in 2015 and beyond.
Financial outlook
For 3Q2014, Willbros Group Inc (NYSE:WG) reported revenue of $559.7 million, which was up from $479.1 million in the same quarter last year. It also suffered a narrower loss in the latest quarter compared to last year. It reported a net loss of $3.6 million versus $25.9 million last year.
Technicals
Willbros Group In (NYSE:WG) enjoyed a finely ordered rally in the period of 2012-13. All the corrections were fast retraced and the series of higher highs and higher lows were maintained perfectly. This bull run finished at $13.69 in 2014 June and a near vertical crash came to take the stock down to test the 2012 low of $4 levels. The price has been finding some buyers around this level but the lack of any serious sign of reversal keep the bears firmly in control.
