TravelSky Technology Shares Fall Sharply After Guidance Disappoints
By Jiahui Huang
TravelSky Technology shares slumped after the company issued weaker-than-expected guidance for 2023 earnings.
The Beijing-based travel company's shares slid 23% to 9.78 Hong Kong dollars (US$1.25) on Wednesday morning, on track for their largest one-day percentage drop on record.
TravelSky said late Tuesday that its expects net profit for 2023 to be between 1.25 billion yuan (US$174.3 million) and CNY1.45 billion, compared with CNY679 million for 2022.
The company said the expected profit increase was due to a higher number of civil aviation passengers.
However, TravelSky's 2023 guidance is "much lower than our expectation," which should drive a share-price correction, Daiwa analysts Kelvin Lau and Frank Yip said in a note.
Citi analysts said in a note that the results are softer than expected at first glance, but will wait for further clarification over the weakness in results.
Both banks maintained buy ratings on TravelSky.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
January 16, 2024 23:11 ET (04:11 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
For Bond Investors, Delayed Rate Cuts Demand a Different Playbook
-
What’s Happening In the Markets This Week
-
How the Tokyo Stock Exchange Is Pushing for Better Shareholder Returns
-
Magnificent 7 Stocks Earnings Updates: AI Remains the Focus
-
Where We See Opportunities After an Ugly Month for Stocks
-
After Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?
-
When Will the Fed Start Cutting Interest Rates?
-
What’s the Difference Between the CPI and PCE Indexes?
-
Berkshire Hathaway Earnings: Strong Insurance Results Continue to Lift Revenue and Profitability
-
10 Questions for Berkshire Hathaway’s 2024 Annual Meeting
-
After Earnings, Is Ford Stock a Buy, a Sell, or Fairly Valued?
-
3 Dividend Stocks for May 2024
-
Amgen Earnings: Obesity Drug Update Is Highly Encouraging
-
What’s Going on With Apple, Tesla, and Alphabet?
-
Apple Earnings: A Weak 2024, but Optimism for 2025
-
4 Utility Stocks to Play the AI Data Center Boom