SYDNEY — Iress shares are on course for their largest ever daily loss after the Australian technology provider suspended its dividend and lowered its annual earnings guidance.
The stock was down 20% at 7.95 Australian dollars (US$5.09) early Monday after Iress said it would prioritize debt reduction against a backdrop of elevated costs from its so-called transformation project.
Iress said it plans to review all aspects of capital management, including debt, dividends and product investment.
Shares were down as much as 33% earlier. Their record loss to date is 17% in September 2022, according to FactSet data.
Iress’s first-half result was weaker than expected and its full-year earnings guidance 19% weaker at the range mid-point than previously forecast, E&P Financial analyst Oliver Coulon said.
“Suspension of the dividend was a concern the market had but will not be taken well in conjunction with the downgrade to FY23 expectations today,” Coulon said in a note.