BWX profit takes a hit from buyout distraction
Stock
BWX Limited (BWX) $2.75 as at 29/10/2018
Event
The skin and hair product company is on the slide today with a downgrade contributing to investor discomfort. The stock is down over 15% after announcing they expect EBITDA growth to be non-existent through FY19, “broadly in line with normalised FY18 EBITDA of $40.3m.” Analysts’ consensus had growth of around 16% to $47m. Not helping the company’s cause, management see a large second half skew of 70% to carry the result, larger than the normal skew of around 60/40.
The failed management buyout (which we wrote about here) launched in September has clearly contributed to the poor performance, disrupting the momentum the company had built up.
BWX Limited (BWX) Chart
Market Matters Take/Outlook
