Much to the relief of its long-suffering shareholders, the Billabong International Limited (ASX: BBG) share price is heading in the right direction at long last.
The embattled surf wear retailer's shares finished the day up 21% at 74 cents on Tuesday. Despite this gain, its shares are still down 45% year-to-date.
Why did its shares jump?
This morning Billabong held its annual general meeting and provided the market with a trading update.
While you might expect the trading update to be a positive one based on the share price gain today, it was far from it.
Earlier this year management stated that its expects FY 2018 EBITDA to exceed the $51.1 million it delivered in FY 2017.
However, this has now been revised lower and management now expects EBITDA to be flat in FY 2018. Furthermore, first-half EBITDA is forecast to be lower than the prior corresponding period, with the second-half expected to be the stronger half.
Judging by the share price gain today, investors may have been anticipating a much weaker trading update.