Corporate Travel Management shares dive after weak guidance
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The news: Shares in Corporate Travel Management have slumped despite a record first-half result, after the company downgraded its full-year guidance.
The numbers: The travel agency said net profit for the six months to December 2023 more than trebled to $50.4 million, while revenue was up 24% to $361.5 million. Underlying earnings nearly doubled to $100.7 million but missed consensus estimates.
Shares in the company plunged more than 18% to $16.23 in early trading on the ASX.
The context: Despite its solid results, the travel agent said a combination of factors, including macro issues and an underperforming UK contract, will have a $40 million impact on its full year earnings. It now expects underlying EBITDA to be in the range of $210 million to $230 million.
RBC analyst Wei-Weng Chen said the weak first-half result and surprisingly large downgrade seemed “inconsistent with prior messaging”, while Citi analysts called it "clearly a messy result".
The source: ASX announcement
