KUALA LUMPUR, April 1 (Bernama) -- Bursa Malaysia closed higher on Wednesday, with the key index rising 1.10 per cent, in line with firm gains across regional markets following a strong rally on Wall Street overnight, said an analyst. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the improvement in sentiment was underpinned by easing geopolitical concerns and a decline in oil prices. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) increase 18.54 points or 1.10 per cent to 1,708.90 from Tuesday’s close of 1,690.36. The benchmark index opened 25.58 points higher at 1,715.94, marking its intraday high, and hit a low of 1,700.20 during the mid-morning session. The broader market was positive, with gainers leading decliners 780 to 444. A total of 475 counters were unchanged, 926 untraded and 11 suspended.
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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