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Investing.com -- Swedencare AB (STO:SECARE) shares fell over 10% on Wednesday after reporting second quarter revenue of SEK 646.7 million with a net loss of SEK 6.9 million, translating to earnings per share of SEK -0.04.
The pet health company posted adjusted EBITDA of SEK 122.9 million for the quarter, representing a 13% decrease compared to the same period last year.
Organic growth reached 7% during the quarter, showing improvement quarter-over-quarter but still falling below the company’s target. Currency fluctuations had a negative impact of 8% on the company’s results during the period.
Jefferies expects the shares to come under pressure, with downside risk driven more by eroding investor confidence than the magnitude of the miss.
"While the company reiterated its full-year guidance for double-digit organic growth and improved profitability, the recurring pattern of quarterly misses, margin compression, and execution delays is likely to reinforce skepticism around its ability to deliver," Jefferies said in a note.
Looking ahead, Swedencare plans to shift its merger and acquisition strategy to focus more on expanding into new geographical markets. The company specifically identified Asia as a very interesting market for future growth, with particular interest in China and India.
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