By Stuart Condie
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.
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