Why the Vocus Group Ltd (ASX:VOC) share price has hit the skids

The Vocus Group Ltd (ASX: VOC) share price is down 3% to $3.33 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

The Vocus Group Ltd (ASX: VOC) share price is down 3% to $3.33 at the time of writing as the market struggles to digest the latest AGM out of the telecommunications provider.

Vocus management reiterated an uptick in revenue by 2% to $1.9 billion and an underlying EBITDA rise of 7% to $366 million for FY18, but with CEO Kevin Russell admitting the second half of FY19 was not expected to be stronger than the first half, you can understand if investors were hoping for a rosier outlook.

Vocus has plenty of projects in its pipeline, but the likes of Telstra Corporation Ltd (ASX: TLS) and TPG Telecom Ltd (ASX: TPM) are dominating the headlines in the sector and that's unlikely to change for some time as the advent of 5G technology looms.

But Russell said the company had a goal to double revenue in its Enterprise, Government and Wholesale segments within five years, so perhaps its just a matter of waiting a bit longer for Vocus to prove itself?

Motley Fool contributor Carin Pickworth owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended TPG Telecom Limited and Vocus Communications Limited. 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 Speculative

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Speculative

Bell Potter is tipping this speculative ASX stock to rocket 60%+

This stock is a high risk, high reward play according to the broker.

Read more »

A couple stares at the tv in shock, one holding the remote up ready to press.
Speculative

Why this speculative ASX stock could rise 100%+

Big returns could be on offer here according to Bell Potter.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Speculative

Brokers say this ASX 300 stock can rise 150%+!

Bell Potter and Morgans have good things to say about this speculative stock.

Read more »

A young man wearing a black and white striped t-shirt looks surprised.
Speculative

Why this speculative ASX stock could rocket 70%

Investors with a high tolerance for risk might want to take a look at the speculative ASX stock in this…

Read more »

Father and daughter with hands on a small plant.
Growth Shares

Could this be a millionaire-maker ASX growth stock at 67 cents?

I'll be keeping a close eye on this ASX fintech.

Read more »

Speculative

Bell Potter says this speculative ASX stock can rocket 40%

If you have a high tolerance for risk, then it could be worth checking out Vitrafy Life Sciences Ltd (ASX:…

Read more »

Man pointing an upward line on a bar graph symbolising a rising share price.
Speculative

Why this speculative ASX stock could rise ~50%

Bell Potter sees potential for big returns over the next 12 months.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Speculative

These speculative ASX mining stocks could rise 85%+

Bell Potter has put speculative buy ratings on these stocks this morning.

Read more »