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).
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Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of SUPERLOOP FPO. The Motley Fool Australia has recommended SUPERLOOP FPO. 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 Scott Phillips.