Guzman Y Gomez grilled by ASX over lack of | Australian Markets
Guzman Y Gomez has been compelled to defend its non-disclosure practices after being queried by the Australian Securities Trade over lower-than-expected earnings within the first half that despatched its shares plunging.
Softer gross sales and earnings within the US, together with group earnings that undershot market expectations, took the shine off the Australian phase’s outcomes and despatched shares tumbling 14.2 per cent on February 21.
In a prolonged letter to the company 4 days later, the ASX questioned whether or not Guzman thought of any measure of its earnings for the December half differed materially from the market’s expectations.
It additionally requested if Guzman had used sell-side analyst forecasts to estimate the market’s expectations of its earnings.
In response, the Mexican-themed restaurant chain stated it didn’t publish earnings steerage for the half-year and believed the outcomes weren’t materially totally different to market’s expectations. It confirmed it was in compliance with the itemizing guidelines.
Earnings earlier than curiosity, tax, depreciation and amortisation for the six months to the top of December hit $26.8 million, 3 per cent beneath market consensus.
Guzman stated it was lined by 10 sell-side analysts whose forecasts had been tracked by the company as an indicator of the market’s earnings expectations. Seven of these analysts supplied forecasts of key measures of Guzman’s earnings for the primary half.
“In the following weeks prior to the results announcement, GYG continued to hold the view that its expected earnings were materially in line with the market’s expectations,” the company stated.
Guzman listed on the ASX final June, with shares hitting $45 the day earlier than it launched its half-year outcomes on February, to a low of $38.58 following it.
Guzman shares had been up 2.1 per cent to $33.60 in early trade on Wednesday.
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