The Eclipx Group Ltd (ASX: ECX) share price lost 56% today, but this is not speculative penny stock it's a member of the benchmark S&P/ ASX200 Index of Australia's leading companies.
A leading company is not supposed to lose 56% of its value in a day, but Eclipx's warning that net profit after tax and amortisation is down 42% for the first 5 months of its fiscal 2019 sent investors charging for the exits today.
Worse was that Eclipx's potential suitor McMillan Shakespeare Limited (ASX: MMS), also conceded it would rescind its takeover offer on the back of today's update from Eclipx.
Just back on January 29 2019, Eclipx had told investors to expect fiscal 2019 profit to be broadly in line with fiscal 2018, which explains the size of today's share price falls.
The novated leasing, car lending and financing group blamed the result on challenging market conditions across its operating groups for the result, but claimed positives were to be found in its cost-cutting program planned to result in the reduction of $20 million in annualised costs over the next 18 months.
