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What Investors Should Be Expecting From Chicago Bridge & Iron

Summary

After taking a beating not long ago, shares of CBI have started rising again as earnings near.

Overall, analysts have pretty weak expectations for the quarter, driven by pessimism in the energy industry.

However, with cost cutting likely a concern of the business during these trying times and one segment that will likely perform very well, I am optimistic.

After the market closes on July 27th, the management team at Chicago Bridge & Iron (NYSE:CBI) is due to report revenue and earnings results for the company's second quarter of its 2016 fiscal year. In its last quarter, the firm failed to meet analysts' expectations so there is a lot of pressure on management to deliver this time around. In what follows, I will dig into what analysts are expecting and give my own thoughts on what investors should anticipate moving forward.

Low expectations from analysts this time around

According to analysts, CBI isn't set for a very good time this quarter. If they are correct, for instance, the firm should see sales of around $2.82 billion, a decrease from the $3.21 billion the company reported for the second quarter of its 2015 fiscal year. In all actuality, while this is bad, it will likely be considered a net positive if the business does meet this goal because the prior year's period consisted of revenue associated with the firm's nuclear construction business, which is no longer owned by CBI. Taking this out, its revenue the same period would probably be around $2.72 billion. Assuming CBI can meet this...


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