Credit Corp (CCP) shares slump with poor guidance
Stock
Credit Corp (CCP) $24.50 as at 29/07/2019
Event
Credit Corp has slumped today, currently the worst performing stock in the top 200 by some margin. The debt collector posted its full year results pre-market which looked reasonable on first glance, however guidance came in well below expectations.
FY19 saw near record collections for the company, but there are signs appearing that the cycle is starting to peak. NPAT of $70.3m was up 9% on FY18, and came was marginally below expectations at $70.7m. The US has been the big driver for CCP in recent times. The company aims to have this segment equal the size of it’s Australian & New Zealand over the next few years.
The market’s issue with the result came with the guidance. CCP is looking for 10-12% growth at the NPAT line, which is around half the rate at which analysts were expecting, falling 10% short of the FY20 estimate of $83.5m.
Credit Corp (CCP) Chart
Market Matters Take/Outlook
