By Stuart Condie
SYDNEY–Shares in Megaport Ltd. plummeted after the communications infrastructure provider’s second-quarter trading update fell short of analysts’ expectations.
Australia-listed Megaport on Tuesday said that it had added 762 new services over the three months through December. Citi analysts had forecast 1,641 net additions, a tally that it said was about 20% lower than the average analyst’s forecast.
The stock was down 19% at 6.23 Australian dollars (US$4.40), making it the worst-performing component of Australia’s S&P/ASX 200 benchmark index and taking it into negative territory for 2023. It was earlier as low as A$6.00.
Megaport, which sells network connection services, added 203 so-called ports in its fiscal second quarter for a total 9,809 as of Dec. 31. Citi’s analysts had expected 435 additions.
In a research note published last week, the Citi analysts said that Megaport’s balance sheet was looking a bit stretched. The company on Tuesday said it had A$57.5 million in cash at Dec. 1, lower than the A$62 million Citi had anticipated.
Megaport on Tuesday said that it had finalized a A$25 million revolving credit facility with HSBC Holdings PLC that will be available later this calendar year, subject to certain earnings hurdles.
Write to Stuart Condie at email@example.com