Shares of Target Hospitality fell to its lowest level in more than a year after the government contractor and modular-housing provider issued a soft revenue forecast for next year.
The stock slipped about 10% to $9.90 a share in morning trading. Shares are down more than 34% this year.
The Woodlands, Texas, company is targeting 2024 revenue of $410 million to $425 million, below the $456.1 million that analysts surveyed by FactSet are expecting.
The company also narrowed its revenue forecast for the current year to a range of $550 million to $560 million, compared with its previous guidance for $550 million to $580 million.
Target Hospitality also disclosed certain terms associated with a contract award from last month for the company’s influx-care facility at the Pecos Children’s Center. The facility is used to house children who have illegally crossed the border.
The new contract award, which is funded through a $75 billion indefinite delivery, indefinite quantity federal contract, allows for up to $3.3 billion of potential funding through 2028, Target Hospitality said.