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Highlights
- Significant Share Price Drop: Cettire shares fell 10.45% to $1.58 at midday after a 17.3% plunge the previous day, marking a 36.09% decrease over the past year.
- Weak Earnings Report: The luxury e-commerce platform reported an adjusted EBITDA of $2 million, down 77% from $8.7 million a year ago.
- Analyst Rating: Bell Potter maintains a $2 valuation on Cettire with a 'buy (speculative)' rating, though forecasts are currently under review.
Cettire (ASX:CTT), the luxury e-commerce platform, has seen its shares extend losses following a significant drop in its September quarter earnings. As of 12:57pm AEDT, Cettire’s shares plummeted 10.45% to $1.58, adding to a steep 17.3% decline the previous day. Over the past year, the stock has fallen a substantial 36.09%, reflecting ongoing challenges in the business.
Earnings Report Highlights
In its recent earnings report, Cettire disclosed an adjusted EBITDA of $2 million, representing a staggering 77% decline from $8.7 million in the same quarter last year. This sharp drop has raised concerns among investors about the company’s financial health and ability to navigate current market conditions.
Bell Potter analysts characterized Cettire’s September quarter results as “mixed,” indicating that while the company is facing significant headwinds, it is managing to navigate tough operating conditions better than in the previous quarter. The analysts noted that despite the disappointing EBITDA figures, there were some positive aspects to the report, including a first-quarter revenue growth of 22% and an exit EBITDA margin run-rate of 5%.
Market Reaction and Analyst Insights
The market's reaction to the earnings report has been severe, with shares tumbling and investor confidence wavering. Bell Potter has placed a $2 valuation on Cettire and maintains a 'buy (speculative)' rating, although the broker’s forecasts for the company are currently under review in light of the latest results.
