RemedyTemp Says Earnings Will Fall Below Expectations

Shares of RemedyTemp Inc., which provides temporary staffing services, fell as much as 35% Friday after it warned that disappointing sales will cause its fiscal third-quarter profit to fall below Wall Street estimates. RemedyTemp’s stock fell to a 52-week low of $10 a share during trading before recovering a bit to close at $13.06 a share, down $2.31 for the day. The Aliso Viejo company was expected to earn 50 cents a share in the quarter, ending July 2, the average estimate of six analysts polled by First Call/Thomson Financial. RemedyTemp said sales rose 5.5% during April and May, below the company’s expectations for the quarter. Chief Executive Paul Mikos said delays in several projects contributed to the “probable shortfall” for the quarter. The company is scheduled to release results on July 25.