Shares in Aconex (ACX), the construction software company were hammered lower yesterday after it warned that full year profit would come in up to 35% under analyst estimates.
The shares fell by up to close to 50% at one stage and were down more than 45% at $3.10 at yesterday’s close.
That’s a long way from peak of $8.53 in July last year. The shares have since lost more than 60% and are now at their lowest since mid 2015.
The company slipped out a small, but surprise downgrade yesterday morning which said financial year 2017 earnings before interest tax, depreciation and amortisation is now expected to be between $15 million and $18 million, down from a previous range of $22 million-$25 million. Analysts were on average predicting $23.11 million.
It said revenue would come in between $160 million and $165 million, which is also below the previous target of $172 million-$180 million, blaming soft first-half sales in the UK and the Americas.
Aconex derives about a quarter of its revenues from these areas – 11% of its revenue from the US, 5% in Canada and 9% in the UK.
