May be good candidate for short.
Endava plc (NYSE: DAVA) shares are down sharply today, dropping nearly 30% to around $15.42 as of mid-afternoon trading. This decline comes despite the company reporting positive third-quarter fiscal 2025 results. Investors appear concerned about the company's forward guidance and broader market challenges.The Motley Fool
Key Factors Behind the Decline
-
Lowered Fiscal 2025 Outlook: Despite an 11.7% year-over-year revenue increase to £194.8 million and a swing to a profit of £10.9 million in Q3, Endava lowered its full-year revenue and earnings per share forecasts. This cautious outlook has raised concerns about the company's future growth prospects. RTTNews
-
Investor Sentiment: The market's reaction suggests that investors are skeptical about the company's ability to sustain growth amid ongoing challenges. Analysts have noted that Endava's performance, while improved, may not be sufficient to offset concerns about its long-term trajectory.
In summary, while Endava's recent financial results show improvement, the lowered guidance and investor concerns about future growth have contributed to the significant drop in its stock price today.
No comments:
Post a Comment