KUALA LUMPUR, March 12 (Bernama) -- Bursa Malaysia’s benchmark index reversed earlier losses to end at its intraday high on Thursday, staging a late rebound during the final hour of trading. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 2.23 points to 1,711.01 from yesterday’s close of 1,708.78. The market bellwether opened 8.09 points lower at 1,700.69, and slipped to its day’s low of 1,694.80 during the mid-morning session before gaining momentum in the afternoon trading toward the close. However, market breadth was negative, with losers leading gainers 538 to 529. A total of 525 counters were unchanged, 1,075 untraded, and 17 suspended. Turnover climbed to 3.01 billion units worth RM3.53 billion from Wednesday’s 2.70 billion units worth RM2.78 billion.
Key Financial Highlights
- Q4 adjusted EPS: $0.15 (missed estimates of $0.17)
- Revenue: $1.098 billion (beat expectations of $1.086 billion)
- 2025 Guidance:
- Adjusted EPS: $0.70-$0.75 (below analyst estimate of $0.94)
- Revenue: $4.7B-$4.8B (vs. analyst forecast of $4.73B)
Restructuring Plan & Job Cuts
- Company announced job cuts, canceled warehouse projects, and terminated leases for stores in "suboptimal" locations.
- The goal is to streamline operations and position the company for long-term growth.
Market Reaction
- Stock plunged 13.3% after hours to $13.65 as investors reacted to the earnings miss and cautious outlook.
CEO's Take
- Chairman Eric Lindberg emphasized that despite setbacks, the company is focused on key strategic initiativesto strengthen its foundation and support future growth.
Summary:
- Q4 EPS miss and weak 2025 guidance triggered a 10%+ drop in Grocery Outlet stock.
- Restructuring efforts include job cuts and canceled store expansions to optimize operations.
- Investors remain cautious as management adjusts its growth strategy.
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