BOOM - DMC Global tumbles on Q2 miss weak Q3 guidance

DMC Global ([[BOOM]] -9.3%) plunges to a YTD low after missing estimates for Q2 earnings and revenues while also guiding Q3 sales below expectations.DMC says it expects Q3 revenues of $70M-$73M, ahead of $65.2 reported for Q2 but below $74.6M analyst consensus estimate.Q3 consolidated gross margin is expected at 24%-26% compared with 26% in Q2, citing the expected increase in North American sales vs. higher margin international sales at DynaEnergetics."Irrational pricing for products and services persists, and is delaying the margin recovery of our industry," CEO Kevin Longe says.The company's near-term guidance is disappointing because of margin headwinds despite rising activity, Stifel analyst Stephen Gengaro says in lowering his stock price target to $59 from $64 while maintaining his Buy rating."With no debt and the recent equity issuance, the balance sheet is strong; however, low cash flows remain a concern," Badsha Chowdhury writes in an analysis posted on Seeking Alpha.

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DMC Global tumbles on Q2 miss, weak Q3 guidance