$9m loss might be low for Q3...
What: Shares of Newpark Resources Inc (NYSE:NR) fell more than 15% in early trading on Wednesday. Fueling the falling stock price was a warning from the company that the third-quarter results from its fluids and mats business segments would be soft.
So what: Newpark Resources' businesses are being affected by the continued weakness in commodity prices. As a result, the company expects operating results from its fluids systems segment to be flat from last quarter, which is weaker guidance than the company had previously provided. Likewise, its mats segment will be weaker than expected due to reduced activity levels particularly in the Northeast. As a result, the company expects revenue of $14 million to $16 million and a breakeven operating margin. That's well below the $23 million in revenue and $6.5 million in operating income from just last quarter.