The Speedcast Ltd (ASX: SDA) share price is down 14% to $1.77 today adding to the pain for shareholders who wore a whopping 41% loss yesterday after the satellite communications business coughed up a big profit downgrade.
For calendar year 2019 Speedcast now expects underlying EBTIDA to come in between US$140 million to US$150 million, compared to prior guidance between $160 million to $171 million.
The company also flagged that it expects EBITDA for the first half of calendar year 2019 to come in between $60 million to $64 million, which means it's relying on a much stronger second half to even meet its downgraded guidance.
The reliance on a stronger second half and investor disappointment over yet another downgrade means the shares have plunged from as high as $3.64 on Monday to just $1.72 this morning. Ouch.
These kind of precipitous falls show what can happen when investors lose trust in a management team and its ability to hit forecasts. Others to have issued downgrades recently include Superloop Ltd (ASX: SLC) and Adacel Technologies Ltd (ASX: ADA).
