NWPX 4Q Prelim Results "Look Very Weak," Jefferies Reports

Jefferies is not impressed with Northwest Pipe's NWPX preliminary 4Q results, saying, “Through a 12b-25 filing last evening, NWPX reported preliminary 2010 sales of approximately $380M and a loss of approximately $1.5M. This implies 4Q10 sales of $91M, up 40% YOY. This is lower than our forecast of +73%. Our forecast was based on the expected realization of water project revenues from the backlog and continued market penetration of the enlarged OCTG business.

“The FY10 operating loss implies a 4Q10 loss of ($1.8M), or ($0.20)/share. Our forecast was EPS of $0.13. The company did not announce any strategic initiatives during 4Q which would have generated a charge, so the loss seems operational. Since we believe the Tubular Products business remained strong, we estimate the flagship Water Transmission segment may have been only modestly gross income profitable.”

Northwest Pipe closed Thursday at $21.21.