Eclipx Group Ltd (ASX:ECX) shares slammed on profit downgrade

Shares in fleet management company Eclipx Group Ltd (ASX: ECX) are down a mammoth 43% to $1.73 at the time of writing

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares in fleet management company Eclipx Group Ltd (ASX: ECX) are down a mammoth 43% to $1.73 at the time of writing after the release of revised FY18 NPATA guidance yesterday.

Eclipx expects to report FY18 NPATA of between $77 million and $80 million – up between 13% and 17% on FY17, but a downgrade from previous expectations of between 27% and 30% growth.

The revised guidance is related to insolvency auction volumes being at decade lows, with Eclipx seeking opportunities in the underpenetrated accident replacement vehicle market to realign its strategy.

Fleet management peer McMillan Shakespeare Limited (ASX: MMS) will deliver its annual report later this month with a market update in June revealing the company was on track to deliver UNPATA of $93.6 million for FY18 with an asset impairment of between $18 million and $24 million expected after its exit from Money Now.

Also in the space Smartgroup Corporation Ltd (ASX: SIQ) shares have travelled up nicely in the last 12 months with its half-year results due in on August 22.

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Fallers

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why APA, Flight Centre, Reece, and Transurban shares are falling today

These shares are having a tough finish to the week. But why?

Read more »

Frustrated and shocked business woman reading bad news online from phone.
Share Fallers

Why Bannerman Energy, Life360, Strike Energy, and Xero shares are tumbling today

These shares are under pressure on Thursday. But why?

Read more »

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.
Share Fallers

Why DroneShield, Neuren, Paradigm, and Pilbara Minerals shares are roaring higher today

These shares are having a strong session on Thursday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Betr, Develop Global, Northern Star, and Paragon Care shares are dropping today

These shares are having a tough time on hump day. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why APA, DroneShield, EOS, and Woodside shares are tumbling today

These shares are missing out on the good times on Tuesday.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Adairs, ANZ, Aurelia Metals, and Pilbara Minerals shares are falling today

These shares are having a tough start to the week in the red. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why ANZ, Clarity, IGO, and Pilbara Minerals shares are dropping today

These shares are ending the week in the red. But why?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Aurelia Metals, Centuria Office, Meeka Metals, and Resolute shares are tumbling today

These shares are having a tough time on Thursday. Let's find out why.

Read more »