Why is this ASX 200 share plunging 29% after a trading update?
📉 $Elders Ltd (ELD.AU)$ share price is experiencing a rocky start to the week! 💔
😮 In morning trade, the ASX 200 share plummeted by a stunning 29% to hit $7.00. Ouch! 😱
🌱 Although the agribusiness company's shares have recovered a bit since then, they're still down 25% at the time of writing. 💔
😮 In morning trade, the ASX 200 share plummeted by a stunning 29% to hit $7.00. Ouch! 😱
🌱 Although the agribusiness company's shares have recovered a bit since then, they're still down 25% at the time of writing. 💔
Why is this ASX 200 share crashing?
📉 Investors panicked on Monday, frantically selling shares in response to a trading update! 😱 The first half of FY 2024 trading fell far below expectations due to multiple factors. 😔
Firstly, client sentiment was dampened by the El Niño declaration, particularly hitting hard during the first quarter of 2024. 🌦️ Crop protection prices also dipped compared to the previous period, hurting sales revenue and margins. 🌾
Moreover, cattle and sheep prices were well below the 10-year average, further dragging down performance. 🐮🐑 March trading was subdued due to a delayed winter crop start in Western Australia and margin pressure on key agricultural chemicals. 🍂
However, there's a silver lining! Management predicts an improved outlook for the FY 2024 winter crop in most regions, noting favourable soil moisture in Eastern and Southern states. 🌱 Western Australia remains dry and warm, pushing sales to the second half. 🌞 Fingers crossed for a rebound! 🤞
Firstly, client sentiment was dampened by the El Niño declaration, particularly hitting hard during the first quarter of 2024. 🌦️ Crop protection prices also dipped compared to the previous period, hurting sales revenue and margins. 🌾
Moreover, cattle and sheep prices were well below the 10-year average, further dragging down performance. 🐮🐑 March trading was subdued due to a delayed winter crop start in Western Australia and margin pressure on key agricultural chemicals. 🍂
However, there's a silver lining! Management predicts an improved outlook for the FY 2024 winter crop in most regions, noting favourable soil moisture in Eastern and Southern states. 🌱 Western Australia remains dry and warm, pushing sales to the second half. 🌞 Fingers crossed for a rebound! 🤞
Earnings estimates
📉 The ASX 200 share predicts EBIT of 120M−140M for FY 2024, a 18%-30% YoY decline from $170.8M in FY 2023. 😔
This marks the second consecutive year of sharp declines, with leverage forecast above target. 😞
However, a small ray of hope: cash conversion target >90% is expected to be met by 30/9/2024. 🤞
ASX 200 share down 14% in the past year. 😔 Hoping for a rebound soon! 🙏 $S&P/ASX 200 (.XJO.AU)$
This marks the second consecutive year of sharp declines, with leverage forecast above target. 😞
However, a small ray of hope: cash conversion target >90% is expected to be met by 30/9/2024. 🤞
ASX 200 share down 14% in the past year. 😔 Hoping for a rebound soon! 🙏 $S&P/ASX 200 (.XJO.AU)$
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152235446Tracey :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Philip_AU OP 152235446Tracey : Hoping for a rebound soon!
152235446Tracey : After being put on for a year, it looked like it was almost back, but now it's gone back![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Philip_AU OP 152235446Tracey : Don't be sad, the market will always fluctuate and maybe the next rally is waiting for you in the near future.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")