One of the worst performers on the market today has been the BWX Ltd (ASX: BWX) share price.
In late morning trade the shares of the company behind the Sukin skincare brand are down 7% to $5.04.
Why are BWX's shares tumbling lower today?
This morning the company released an announcement to advise of a new date for the release of its full-year results.
According to the release, BWX will now release its results on August 29 instead of August 15. This is due to a number of factors impacting on company resources, including the evaluation of a non-binding indicative offer from a consortium led by Bain Capital and the undertaking of a strategic review.
In respect to the latter, the delay will allow the company to provide an update on its strategic review when its releases it results.
In addition to this, the company sneaked in a profit update at the bottom of the release.
Management has advised that unaudited underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) for the 12 months ending June 30 is expected to be between $40 million and $41 million. This represents an increase of 52% to 55% on the prior corresponding period.
What it failed to include was the fact that in its half-year results it had provided full-year guidance of EBITDA in the range of $42 million to $46 million, representing an increase of between 60% and 74% on FY 2017.
No reasons have been given for the guidance downgrade.
Should you buy the dip?
While I'm a big fan of the Sukin brand and believe it has a lot of promise, all the drama going on behind the scenes has put me off the company.
Because of this, I intend to stay clear of BWX for the foreseeable future and focus on other options in the sector such as the shares of Bellamy's Australia Ltd (ASX: BAL) and Blackmores Limited (ASX: BKL).
