Record Volumes Reported by World Fuel Services, but Share Price Tanks as Earnings Miss Estimates

The company's share price plunged after earnings missed analyst expectations.

Record volumes weren't enough to stop the share price for World Fuel Services Corp. (WFS) taking a beating Friday after the company reported lower than expected earnings for the second quarter, RTTNews reports. 

The company's stock plunged over 13 percent Friday after it was announced that earnings per share (EPS) for the quarter had been $0.53, missing estimates of $0.71, according to reports. 

Non-GAAP net income fell to $37.9 million compared to $57.9 million this time last year, with the company's marine segment also seeing income from operations fall to $13.6 million from $20.9 million the year before. 

"While we posted record volumes in all segments, seasonality in Watson Fuels and low prices coupled with reduced volatility in marine, significantly impacted profitability," said CEO Michael J. Kasbar.

"We expect a significant rebound in our results in the second half of the year and remain optimistic about our long-term growth prospects."

The news has reportedly led investment analysts at Stephens to downgrade WFS from an "overweight" rating to an "equal weight" rating, having suggested a potential downside of 6.76 percent from the company's current price.

However, Credit Suisse was reported to have maintained its "outperform" rating even as it lowered its target price.

According to WFS CFO Ira M. Birns, the company has maintained a solid balance sheet, which is expected to aid the company in the next half of the year as it funds new growth initiatives. 

In June, the company also announced that it would be renewing its share buybacks.