NEW YORK (AP) -- Shares of InnerWorkings tumbled in premarket trading on Wednesday as the company that provides and manages marketing supplies for businesses lowered its full-year forecast as it lost some business from one of its clients.
Late Tuesday InnerWorkings Inc. said that it now expects 2013 earnings of 45 cents to 50 cents per share, down from a prior outlook of 57 cents to 61 cents per share. Revenue is now anticipated in a range of $900 million to $930 million. Its previous guidance was for revenue between $930 million and $960 million.
Analysts surveyed by FactSet predicted earnings of 57 cents per share on revenue of $945.7 million.
InnerWorkings said that its revised forecast accounted for a change in control at a large retail client, which led to the redirection of a significant part of work that InnerWorkings had handled for the client. It went to a provider with an existing business relationship with the client's new management team, InnerWorkings said. It said that it expects to continue serving part of the client's business, however.
"While we are disappointed by the revenue loss from a major client, we understand this risk presents itself when a client undergoes a change in control. We look forward to continuing to deliver excellent service and savings for them, albeit in a new reduced role," CEO Eric Belcher said in a statement, adding that the company's new business pipeline is still strong.
The company said its lowered outlook is somewhat offset by the acquisition of DB Studios Inc., a distributor of permanent POP displays and retail fixtures. The deal closed last month. InnerWorkings said that it anticipates DB Studios contributing about $20 million in revenue for the rest of 2013.
For the first quarter, InnerWorkings expects earnings between 1 cent and 3 cents per share on revenue in a range of $204 million to $207 million. Wall Street expects revenue of $218.3 million.
The company is expected to report its first-quarter financial results on May 9.
InnerWorkings' stock dropped $3.53, or 25.2 percent, to $10.50 shortly before the market opening.
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