Shares of Australian technology provider Iress are experiencing their largest daily loss ever as the company announces the suspension of its dividend and a downward revision of its annual earnings guidance.
At the start of Monday, Iress shares dropped by 20% to AUD 7.95 (USD 5.09). The company’s decision to prioritize debt reduction due to increased costs from its transformation project is a contributing factor.
As part of its capital management review, Iress is considering various aspects, including debt, dividends, and product investment.
Earlier in the day, shares tumbled by as much as 33%, surpassing their previous record loss of 17% in September 2022, according to FactSet data.
Financial analyst Oliver Coulon from E&P Financial noted that Iress’s first-half performance was weaker than expected. Furthermore, the company’s full-year earnings guidance for 2023 is 19% lower at the mid-point range compared to previous forecasts.
Coulon commented, “While the market already had concerns about the suspension of the dividend, today’s downgrade to FY23 expectations will not be well-received.”