The Costa Group Holdings Ltd (ASX: CGC) share price is continuing its steep descent after plunging 8% yesterday.
At the time of writing, the horticulture company's shares are down 2.64% to $2.58 apiece.
What happened to Costa shares?
Following the company market update on Monday, investors drew ire, sending the Costa share price to a 52-week low.
The negative reaction spurred a large number of shares being traded – more than 16 million in total for the day.
Subsequently, this sparked a please explain letter from the stock exchange operator, ASX Ltd (ASX: ASX).
Costa didn't respond until the next day (early this morning) to the request regarding its ASX price query.
Management stated that it "wasn't aware of any information that its earnings for H1 FY22 are likely to come as a surprise to the market."
It expects the unaudited results for both the international and domestic produce segments to be ahead when compared to the prior corresponding period (H1 FY21).
Furthermore, unaudited Group EBITDA before movement in biological assets and material items is forecasted to be up 10%-15% on H1 FY21.
Costa acknowledged a recent broker report regarding a revision of its earnings. It said that while the analyst's view is subjective, "this would not materially impact on analyst consensus."
Since then, the particular broker has provided a further update following the recent share price movement.
Costa share price summary
It has been a difficult past couple of months for the Costa share price, tumbling by 25% from its year-to-date high of $3.455.
The company's shares have suffered from a number of broker downgrades amid the extreme volatility on the ASX.
When looking at year to date, its shares are down roughly 15%.
Based on today's price, Costa commands a market capitalisation of $1.34 billion.
