Shares in Cubic Corp. fell 11 percent to close at $40.03 on Oct. 13 after the company said it expected lower-than-expected sales and earnings for the year.
The San Diego defense contractor announced that morning that it expected sales and adjusted EBITDA for fiscal 2016 would be below the guidance it gave markets earlier.
Cubic (NYSE: CUB) said the main reason for the shortfall was funding delays from its federal customers.
The business said it expected consolidated sales for the year to be in the range of $1.435 billion to $1.455 billion, and that adjusted EBITDA for the year would be in the range of $112 million to $120 million.
Cubic had previously said it expected sales to be in a range of $1.51 billion to $1.56 billion and adjusted EBITDA to be in the range of $130 million to $145 million.
Company CEO Bradley Feldmann said that the company was “disappointed by the shortfall in the fourth quarter performance. … We fully expect that the delayed orders will be received in fiscal year 2017 and we continue to expect improved performance in 2017.”
Cubic said the delays in federal funding specifically covered higher-margin orders in the Mission Solutions and Training Systems businesses within its defense systems segment.
EBITDA stands for earnings before interest, taxes, depreciation and amortization. Cubic said it adjusted the EBITDA number to back out certain other expenses, including certain expenses to acquire other businesses and expenses to develop its enterprise resource planning computer system.
Cubic — which also offers technology for mass transit systems — said it planned to release its financial results in November.