Cubic Warns That Profit Will Be Below Expectations Because Of DoD Funding Delays

Cubic Corp. warned Friday that fiscal fourth-quarter earnings, as well as earnings before interest, taxes, depreciation and amortization (EBITDA) were lower than expected, citing funding delays from the U.S. Department of Defense. The defense contractor said it expects revenue for fiscal 2016 ending September to be $1.435 billion to $1.455 billion, below the FactSet consensus of $1.521 billion. "We are disappointed by the shortfall in the fourth-quarter performance which impacted our FY16 financial results," said Chief Executive Bradley H. Feldmann. "We fully expect that the delayed orders will be received in fiscal year 2017 and we continue to expect improved performance in 2017." The stock, which was still inactive in premarket trade, has lost 4.7% year to date while the S&P 500 has gained 4.7%.