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InnerWorkings misses on 3Q earnings, suggests more cost-cutting measures in the works

The marketing company lowered its full-year due to a larger-than-expected drop in revenue from transactional and small accounts
People sitting in a marketing meeting
InnerWorkings provides marketing services to big-name brands, including Energizer and The North Face

InnerWorkings Inc (NASDAQ:INWK) shares slipped double-digits after swinging to a loss in its third-quarter results and lowering its full-year outlook.

The marketing company reported a net loss of $0.87 per share on revenue of $270.9 million compared with $0.15 EPS on revenue of $288.39 million in the previous year’s third quarter.

The Chicago-based company fell short of Wall Street estimates of earnings of US$0.12 per share.

The company lowered its guidance for the year ahead due to a larger-than-expected drop from transactional and small accounts.

READ: Hertz surpasses 3Q earnings and revenue as shares race higher

InnerWorkings provides marketing services to big-name brands, including Energizer, The North Face, Calvin Klein, Kroger and Party City.

Revenue is expected to be in the range of $1.12 billion to $1.14 billion compared with its prior expectation of $1.15 billion to $1.19 billion in revenue.

Full-year earnings are expected to in the range of $0.17 per share to $0.20, lower than the prior guidance of $0.30 per share to $0.33 per share.

The company said that its cost-reduction plan is halfway completed and suggested that more cuts may be on the way.

“We are focused on implementing the remaining $9 million and we believe additional cost reductions beyond the original scope are possible and necessary to drive shareholder value,” said Interim Chief Financial Officer Chip Hodgkins.

Hodgkins said that the company is in talks with third-party experts, looking at ways to drive margin improvement.

Shares of InnerWorkings plummeted more than 35% to $4.54 in Friday afternoon trading.

 

Contact Lenore Fedow at [email protected]

Follow her on Twitter@LenoreMariee

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