Finance Column Hub
Stock Market

Megaport Shares Slump After Update Misses Analysts’ Expectations

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

Source link

Related posts

Strong Jobs Kneecap Stock Market; Solar Stocks Eclipsed; Bullard Speaks

J Howdo

Finding Winners In A Down Stock Market

J Howdo

Dow jumps more than 200 points as Wall Street tries to shake off China Covid worries

J Howdo

Leave a Comment