CRASH: iSelect Ltd’s share price plunges 31%

Credit: eFile989

Shareholders of insurance comparison website iSelect Ltd (ASX: ISU) might want to look away now…

Source: Yahoo! Finance

Source: Yahoo! Finance

On a day where the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has fallen more than 100 points to a level not seen since mid-2013, the iSelect share price has plummeted almost 32%.

The shares are trading at just 75 cents after hitting an all-time low of 68 cents earlier in the session.

Today’s sharp decline came as a result of a significant earnings downgrade with management now guiding for full-year earnings before interest and tax (EBIT) in the range of $15 million to $18 million.

It continues what has thus far been a terrible performance from iSelect as a public company since 2013, when its shares were floated on the ASX for $1.85 each. Based on some of the reasons given for the downgrade, this certainly seems like one for investors to avoid, for now at least.

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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