Energy Solutions shares plunge after guidance cut

The stock dropped $4.50, or 44.4 percent, to $5.64 in afternoon trading.

Energy Solutions, which cleans up radioactively contaminated sites, now expects to earn 50 cents to 60 cents per share for the year, down from a previous estimate of 69 cents to 74 cents per share.

Analysts polled by Thomson Reuters expect, on average, earnings of 69 cents per share for the year. Analysts typically exclude one-time charges.

Additionally, Energy Solutions said it expects its financial performance in 2009 to be "similar" to 2008.

"The financial crisis that is impacting the United States and world markets will delay Energy Solutions' ability to accelerate the decommissioning of identified nuclear power plant assets, a key growth initiative," the company said in a statement.

The Nuclear Regulatory Commission denied Salt Lake City-based Energy Solutions' request last week to use decommissioning trust funds to process and dispose radioactive materials, the company said.

"We surmise that this denial has pushed out work for several quarters well into 2009," Wedbush Morgan Securities analyst Al Kaschalk said in a note to clients.

Kaschalk maintained a "Hold" rating and $15 price target, implying he expects the stock to rise 48 percent over Monday's $10.14 close.

For 2008, Kaschalk expects Energy Solutions to earn 63 cents per share.