The All Ordinaries Index (ASX: XAO) is in the green today, but not all ASX All Ords shares are joining in the party.
The All Ords is up 0.06% at the time of writing, having earlier posted gains of 0.5%, buoyed in part by the US Fed's overnight decision not to raise interest rates.
Running at the back of the pack today is diversified industrial company DGL Group Ltd (ASX: DGL).
At the time of writing, the DGL share price is down 15.95% at 98 cents per share.
Why is the ASX All Ords share tumbling today?
The ASX All Ords share is under heavy selling pressure after the company released a trading update and revised earnings guidance for the 2023 financial year (FY23).
DGL said it has achieved its forecast revenues to date and expects FY23 revenue of at least $450 million for the full year.
Of concern to All Ords investors today, the company also reported that increased costs – especially within its environmental division – have eroded margins. This led management to downgrade its full-year earnings guidance.
DGL revised earnings before interest, taxes, depreciation and amortisation (EBITDA) for FY23 downwards from the previous $71.5 million to $73.5 million to the new estimate of $64 million to $66 million.
Commenting on the downgrade that's sending the ASX All Ords share tumbling today, DGL CEO Simon Henry said:
The management team has further intensified its focus on all controllable costs. Notwithstanding the challenges caused by these cost increases, the company continues to experience strong demand for its products and services.
On a positive front, the company noted that its cash conversion remained above guidance at close to 100%. Inventory levels have also normalised from the highs reached in FY22.
An all-time low for the DGL share price
The IPO, underwritten by Bell Potter and Canaccord Genuity, was oversubscribed.
DGL raised $100 million by issuing 100 million new shares at $1.00 per share.
The ASX All Ords share had a good run for the next year, closing at $4.09 on 22 April 2022.
At the current 98 cents per share, DGL stock is now below its IPO level and trading at an all-time low.