Service Experts Slides
Service Experts (NYSE: SVE) shares nose-dived 29 percent Feb. 23 after it announced that warm winter will affect its 1999 earnings.
The industry consolidator expects its earnings to be around $1.65 to $1.70 per share in 1999, falling short of the $1.77 per share that Wall Street analysts had been predicting. The stock had been steadily declining since Jan. 4 when it was $29.50 per share, but was nowhere near its high of $38 per share from July 1998.
According to Reuters, CEO Alan Sielbeck called the drop in stock an “unwarranted emotional reaction.”
Service Experts also incurred costs trying to start up a national marketing campaign. Sielbeck said he thought the costs would be offset by new revenues, but it appears unlikely with the warm winter.
Service Experts currently operates in 34 states. At press time, Service Experts was at $11 per share, a new 52-week low.