News

Marks Electrical Faces Challenges with Lower-Than-Expected Gross Margin

1 Mins read

London, UK – Shares in Marks Electrical (LSE: MARK) saw a significant decline of 25% following the company’s announcement that its gross product margin fell below expectations, impacting its projected revenue and earnings for the full fiscal year.

At 0822 GMT, shares were down 22.50 pence at 69.00 pence. Over the past 12 months, shares have dropped 26%.

The online electrical retailer, listed on the London Stock Exchange, stated that its gross product margin failed to meet expectations due to a challenging environment characterized by tight consumer spending. As a result, the company’s profit guidance for the year ending Mar. 31 has been negatively affected.

Marks Electrical now anticipates revenue to be within the range of £115 million to £118 million ($146.2 million-$150 million), with earnings before interest, taxes, depreciation, and amortization (EBITDA) ranging from £5 million to £6 million.

The company did not provide prior guidance. However, analysts polled by FactSet estimated revenue to reach £116 million and EBITDA to be £8 million. In the previous year (2022), Marks Electrical generated £97.75 million in revenue and £7.5 million in adjusted EBITDA.

“Going forward, we expect to see continued revenue growth in line with our expectations, but remain cautious about the speed of recovery in consumer buying patterns, which we anticipate will temporarily impact the recovery of our gross product margin,” commented Mark Electrical in a statement.

Related posts
News

HP Inc.'s Fiscal Results Insights

1 Mins read
HP Inc.’s stock experienced a 4% decline in extended trading on Wednesday following the release of their latest fiscal results that were…
News

Lawsuit Over Crown Castle Governance Rights

1 Mins read
Overview Crown Castle co-founder Ted Miller, along with his investment vehicle, has filed a lawsuit challenging an agreement between the company’s board…
News

The Demise of Defined Benefit Pension Plans

3 Mins read
Different Perspectives on ERISA’s Impact While many view ERISA as a contributing factor to the decline of defined-benefit (DB) plans, others argue…

Leave a Reply

Your email address will not be published. Required fields are marked *

67 − = 65