One of the best performers on the local market today has been the G8 Education Ltd (ASX: GEM) share price.
In late afternoon trade the embattled childcare operator's shares are up over 7% to $2.35.
Why are G8 Education's shares surging higher?
This morning the company released a presentation to the market ahead of the Macquarie Group Ltd (ASX: MQG) Australia conference.
Although the presentation didn't contain any new information, it appears investors are relieved to see that its performance has not deteriorated further since the release of its last update.
G8 Education's management team once again reiterated that like-for-like occupancy levels were down between 2.5% and 3% so far in 2018. Management has blamed this on supply growth outpacing demand growth.
But while it expects the situation to improve when new funding packages are released, it seems that a turnaround in fortunes has been around the corner for a couple of years now and failed to materialise.
This recently led to the company admitting that its earnings per share goal of 40 cents by the end of FY 2019 was unachievable.
The shares of smaller rival Think Childcare Ltd (ASX: TNK) are flat today.
