Civeo Shares Crater In Premarket Trade; Susquehanna Cuts Estimates

Shares of Civeo Corp. plunged 36% in premarket trade Tuesday, after the company's late-Monday announcement that the slowing construction project environment in Canada and Australia due to slumping commodity prices would hurt 2015 earnings. The company provides temporary and long-term accommodation to workers on oil projects, particularly in the Canadian oil sands and Australian resource sectors. Susquehanna analysts cut their estimates on the news and lowered their price target to $6 from $10. "Given the lack of visibility on new project activity that could stabilize the current trends, we maintain our Neutral rating," they wrote in a note. Civeo also suspended its dividend, "which is particularly surprising given investor calls for a higher dividend only a few months ago," they wrote. The company was spun off from Oil States International Inc. in June.