Shares of McDermott International Inc. MDR, -2.13% plunged 27% toward a 2 1/2-year low, to pace all premarket decliners, after provider of technology, engineering and construction services to the energy industry missed earnings and revenue expectations, and said it plans to sell its tank storage and U.S. pipe fabrication businesses. The company also said late Tuesday that it recorded $744 million of changes in estimates on three projects after it took “significant steps to address performance issues” on the Cameron LNG, Freeport LNG and Calpine gas power projects. Analyst Tahira Afzal at KeyBanc Capital followed by downgrading the company to sector weight from overweight. “We see management as staging a potential recovery through thoughtful execution, but our concerns are more around timeline and incremental risks that could arise and stretch into late 2019, keeping the stock volatile,” Afzal wrote in a note to clients. The stock was on track to open at the lowest price seen during the regular trading session since Feb. 26, 2016. The stock had already plunged 28.5% over the past three months through Tuesday, while the SPDR Energy Select Sector ETF XLE, +2.31% had shed 13.5% and the S&P 500 SPX, +1.57% had lost 4.8%.
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