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.-
What’s Happening in the Markets This Week
-
Worst-Performing Stock ETFs of the Quarter
-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue
-
Industrials: Many Stocks Overvalued After Q3 Outperformance
-
Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities
-
What the Election Could Mean for Big Tech Stocks
-
3 Lessons From Recent Stock Market Drama
-
Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts
-
Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued
-
Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks