Shares in A2 Milk Company Ltd (ASX: A2M) are soaring today, despite no news having been released by the company. At the time of writing, the A2 Milk share price is $6.05 – 5.77% higher than its previous closing price.
The company’s share price has been on a generally upwards trend since mid-May. It’s gained 12.6% since this time last month. The gain has come despite circling news of a class action against the company.
Let’s take a closer look at what the former market darling has been up to this year.
What has A2 been up to?
The last time we heard price sensitive news from A2 Milk was on 10 May, when the company released another downgrade – sending its share price plummeting 13.1%.
The latest guidance was A2’s fourth downgrade for the 2021 financial year.
A2 Milk originally expected its revenue and earnings before interest, tax, depreciation, and amortisation (EBITDA) to be up to 31% higher than its 2020 financial year results. The 2020 financial year saw the company bring in NZ$1.73 billion in revenue and report EBITDA of NZ$549.7 million.
Now, A2 expects its revenue for the 2021 financial year to be between NZ$1.2 billion and NZ$1.25 billion.
It also implied it expects its EBITDA to be between NZ$132 million and NZ$150 million. That’s around 73% to 76% less than last financial year’s EBITDA.
The only other price sensitive news we’ve heard out of A2 Milk this year was its half-year results. In the aftermath of that release, the A2 share price fell 16%.
A2 Milk share price snapshot
Despite today’s upwards movements and its general performance over the past month, 2021 on the ASX hasn’t been good to the A2 Milk share price.
Currently, it’s 47% lower than it was at the start of 2021. It has also fallen 65% since this time last year.
The company has a market capitalisation of around $4 billion, with approximately 742 million shares outstanding.