The Gentrack Group Ltd (ASX: GTK) share price has come under pressure on Friday morning.
At the time of writing the shares of the provider of essential software for essential services are down 11% to $4.29.
Why is the Gentrack share price crashing lower today?
This morning Gentrack provided a trading update ahead of its full year results release next week.
According to the release, the company expects to post revenue of NZ$112 million for the 12 months ended September 30. This will be an increase of 7.2% on its revenue of NZ$104.5 million it recorded in FY 2018.
However, things are not expected to be as positive for its EBITDA. Management expects its EBITDA for FY 2019 to be marginally below its guidance range of between NZ$25 million and NZ$26 million. This implies a year on year decline of at least 19%.
Whilst this is disappointing, it is worth noting that this is the third time it has downgraded its EBITDA guidance since the end of July.
Its original FY 2019 guidance was for an EBITDA result marginally ahead of FY 2018's NZ$31 million.
Then on July 25 this was downgraded to be within a range of between NZ$27 million and NZ$28 million.
This was downgraded further on September 30 to be within a range of between NZ$25 million and NZ$26 million. Then today the company revealed it would fall short of this.
What about FY 2020?
Things are not expected to get better any time soon for Gentrack due largely to uncertainty in the UK market.
In light of this, management advised that its outlook for FY 2020 is broadly flat. Though, given its poor forecasting this year, I suspect the market may take this guidance with a pinch of salt.
Also tumbling lower on Friday is the Regional Express Holdings Ltd (ASX: REX) share price after a disappointing trading update late on Thursday and the Mayne Pharma Group Ltd (ASX: MYX) share price following its AGM update.
