Packaging products supplier Bemis shares today hit a new annual low of $27.50, retreating past its previous annual low of $28.01. The stock's months-long decline continues, dropping below the 29 level for the first time since December 2005.
The stock's diminishment today can be attributed to the company's drastic cut to its third-quarter earnings outlook, which dropped to between 37 cents and 40 cents a share from the prior forecast of 48 cents to 51 cents a share. In addition, BMS announced that it expects to reduce its 2007 annual revenue estimate to $1.90 to $1.97 a share, a near 10% cut from its previous outlook.
Analysts believe Bemis' backpedaling is a signal that makers of packaging materials are facing lethargic markets in North America and Europe. Bemis Chief Executive Jeffrey Curler said that lower sales severely impacted manufacturing cost absorption and operating profit, adding the company expects weak business conditions to continue into the fourth-quarter.
BMS shares are currently trading at $28.25, down a hefty 4.85%.