KUALA LUMPUR, May 11 (Bernama) -- Late selling pressure dragged Bursa Malaysia into negative territory at the close, reversing earlier gains as profit-taking in heavyweight banking and transportation counters dampen overall market sentiment. At 5 pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) eased 2.75 points to 1,745.31 from Friday’s close of 1,748.06. The benchmark index, which opened 5.94 points firmer at 1,754.0, moved between 1,744.99 and 1,754.0 during the trading session. Market breadth was positive with gainers leading losers 562 to 558. A total of 636 counters were unchanged, 897 untraded, and 12 suspended. Turnover increased to 4.20 billion units worth RM3.17 billion compared with 3.31 billion units worth RM3.00 billion on Friday.
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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