Nursing home operator Estia Health was forced yesterday to backtrack on an investor update in which it claimed none of its residents had contracted coronavirus after 13 tested positive at one of its facilities in Melbourne’s western suburbs. It took two updates, a trading pause, and a halt to get the story straight to the ASX.
oOh!media shares continued to slide yesterday in the wake of its Monday announcement to drop its earnings guidance for the time being. Estia Health is another company to withdraw its current earnings guidance because of the impact - real and probable of COVID-19.
A bit of truth-telling ahead of the long Christmas break with more pain at Boral while Estia Health has warned that it now expects lower earnings for the 2019-20 financial year as has salary packaging and car leasing group, McMillan Shakespeare.
Morgan Stanley notes the volatile response to the AGM. The broker considers the update as a negative as EBITDA estimates and RAD inflow guidance are less than expected. The broker believes a tight liquidity position leaves little room for error.