KeyBanc Downgrades ENGlobal Corporation (ENG) to Hold; Q2 Miss, Visibility Weak

KeyBanc downgraded ENGlobal Corporation (NASDAQ: ENG) from Buy to Hold.

Analyst, Matt Tucker, said, "We are downgrading ENGlobal following its weaker-than-expected 2Q12 results, which have dampened our near to medium-term earnings outlook and have put the firm in violation of covenants under its new credit facility, generating some concerns around ENG's near-term liquidity. This follows several quarters of disappointing performance from ENG and adds to a series of events that have contributed to the uncertainty around the firm's direction, including recent credit issues that we believe impacted competitiveness in 1H12 (at least temporarily), the abrupt June 13 departure of its CFO (still without full-time replacement), and the unexpected August 1 departure of two-year CEO Edd Pagano, who was replaced by co-founder, Chairman and former CEO Bill Coskey."

KeyBanc lowers FY13 EPS estimate from $0.38 to $0.00.

For an analyst ratings summary and ratings history on ENGlobal Corporation click here. For more ratings news on ENGlobal Corporation click here.

Shares of ENGlobal Corporation closed at $1.10 yesterday.

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