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Mistras Group falls on weak 2013 expectations

NEW YORK (AP) -- Shares of Mistras Group fell to their lowest point in more than a year on Wednesday as the software company's projected fiscal 2013 adjusted earnings and revenue came in below Wall Street's expectations. It also gave 2014 adjusted earnings and revenue forecasts below analysts' estimates.

THE SPARK: Late Tuesday Mistras said that it anticipates full-year adjusted earnings before interest, taxes, depreciation and amortization of about $68 million. It previously predicted adjusted EBITDA of $75 million to $80 million.

Analysts surveyed by FactSet expected EBITDA of $72.4 million.

Mistras said part of the reason the figures came in below its outlook is because of declining profit margins and higher-than-expected costs related to recent acquisitions.

The Princeton Junction, N.J., company expects full-year revenue of about $529 million. Mistras' previous forecast was for revenue in a range of $525 million to $535 million.

Analysts had predicted revenue of $532.5 million.

The company expects to report its full-year results on Aug. 8.

For fiscal 2014, Mistra expects adjusted EBITDA between $74 million and $80 million. The company foresees full-year revenue of $570 million to $600 million.

Wall Street expects EBITDA of $82.7 million on revenue of $603.1 million.

SHARE ACTION: Mistras Group Inc.'s stock declined $2.59, or 12.7 percent, to $17.85 in afternoon trading. The stock dropped to $17.36 earlier in the session, its lowest level in more than a year. For the year to date, the shares are down 17 percent.