DMC Global lowers Q4 sales projection, stock tumbles Stock closed down 16 percent Tuesday

BROOMFIELD — The stock price for DMC Global Inc. (Nasdaq: BOOM) tanked Tuesday, losing more than 18 percent of its value at one point after the company announced its fourth quarter 2019 sales could be nearly 20 percent lower than previous estimates. 

DMC’s previous fourth quarter revenue guidance pegged sales in the range of $92 million to $97 million. That guidance has been lowered to $82 million to $86 million.

“The revision is due to a sharp decline in North American well completion activity and significant pricing pressure affecting DynaEnergetics, DMC’s oilfield products business,” according to a DMC news release. 

The oilfield business unit had previously forecasted quarterly sales of $72 million to $75 million. That prediction has been adjusted down to $62 million to $64 million.

DMC’s composite metals business is expected to meet its previously forecasted Q4 revenue target of $20 million to $22 million.

Full year EPS guidance has been adjusted down from the $3.65 to $3.80 range to the  $3.50 to $3.60 range.

“The year-end decline in market activity at DynaEnergetics occurred earlier and was more pronounced than we anticipated,” DMC CEO Kevin Longe said in a prepared statement. “DynaEnergetics also has turned away multiple order opportunities that did not meet the margin objectives we seek for our differentiated perforating systems.”

He added: “Customer interest in DynaEnergetics’ advanced perforating systems remains strong, and we have not seen any notable changes on the competitive product landscape. We believe sales activity at DynaEnergetics will begin to recover early next year, as exploration and production companies commence their 2020 well completion programs.”

In mid-October, DMC posted $100.09 million in sales for its previous three months ending Sept. 30, a 10 percent decrease from Q2 but an increase of 14 percent over Q3 last year.

DMC’s stock fell 16.6 percent at the close of trading Tuesday to stand at $43.65 per share.

BROOMFIELD — The stock price for DMC Global Inc. (Nasdaq: BOOM) tanked Tuesday, losing more than 18 percent of its value at one point after the company announced its fourth quarter 2019 sales could be nearly 20 percent lower than previous estimates. 

DMC’s previous fourth quarter revenue guidance pegged sales in the range of $92 million to $97 million. That guidance has been lowered to $82 million to $86 million.

“The revision is due to a sharp decline in North American well completion activity and significant pricing pressure affecting DynaEnergetics, DMC’s oilfield products business,” according to a DMC news release. 

The oilfield business unit had previously forecasted quarterly sales of $72 million to $75 million. That prediction has been adjusted down to $62 million to $64 million.

DMC’s composite metals business is expected to meet its previously forecasted Q4 revenue target of $20 million to $22 million.

Full year EPS guidance has been adjusted down from the $3.65 to $3.80 range to the  $3.50 to $3.60 range.

“The year-end decline in market activity at DynaEnergetics occurred earlier and was more pronounced than we anticipated,” DMC CEO Kevin Longe said in a prepared statement. “DynaEnergetics also has turned away multiple order opportunities that did not meet the margin objectives we seek for our differentiated perforating systems.”

He added: “Customer interest in DynaEnergetics’ advanced perforating systems remains strong, and we have not seen any notable changes on the competitive product landscape. We believe sales activity at DynaEnergetics will begin to recover early next year, as exploration and…