Goldman Sachs Maintains Neutral on The Shaw Group

Goldman Sachs is out with its report on The Shaw Group

, maintaining Neutral. In a note to clients, Goldman Sachs writes, "SHAW reported 3Q2011 EPS of $0.42 (ex-Westinghouse and excluding $1.28 in charges) vs. GS/consensus estimates of $0.62/$0.68. The company also issued 2012 guidance of $2.20-$2.50 vs. GS/consensus of $2.55/$2.72. We view this as a very weak result for SHAW, given the weak bookings, execution issues and FY12 guidance. We expect the stock to trade down tomorrow (June 29) on this news (currently -13% in the after-market). We are particularly interested in what the FY12 guidance assumes from a share repurchase standpoint given the company's contract capital position." At the time of posting, shares of SHAW were trading at $28.89, down 10.58% from Tuesday's close.