Gentrack sinks on profit warning; NZ shares fall overall
The S&P/NZX 50 Index decreased 11.86 points, or 0.1 percent, to 10,946.30. Within the index, 16 stocks fell, 20 rose, and 14 were unchanged. Turnover was $138.7 million.
Gentrack dropped 12.6 percent to $4.50, the lowest close in more than two years, after it said earnings before interest, tax, depreciation and amortisation were below its previous guidance range of $25-26 million in the year ended Sept. 30. The company said the outlook for 2020 was also flat. Some 76,000 shares were traded, less than its 90-day average of 103,000.
"That would be the third downgrade for them," said Peter McIntyre, an investment adviser at Craigs Investment Partners. "It's a growth stock and the market doesn't like those words when they come from a growth company."
Synlait Milk fell 3.8 percent to $9.14. The dairy processor said it planned to raise up to $200 million in a five-year bond issue, which it would use to repay bank debt.
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