KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
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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