Eclipx Group (ECX) downgrades growth expectations
Stock
Eclipx Group (ECX) $1.76 as 07/08/2018Event
After market yesterday, ECX came out with an earnings downgrade and the stock has been walloped in trade this morning – down around ~40% at time of writing on a downgrade that was closer to ~10%. The diversified industrial business that does fleet management, vehicle rentals and online auctions (it owns Grays Online) said that profit would be in the range of $77- 80m for FY18 which implies growth on FY17 of 13-17% versus prior guidance for growth of +27-30%. The current issues are around their Right2Drive brand and Grays Online which both have performed below expectations. The core leasing business remains strong. ECX say these are short term cyclical factors given a lack of delinquencies through banks (which supports the sale of equipment through Grays) and longer utilisation of equipment given the level of infrastructure build playing out across Australia. Eclipx (ECX) Chart