Investors took flight on earnings disappointment

Singapore Airlines, Keppel Corporation and SembCorp Marine had released their quarterly results recently. Net profit declined for the quarter for all three companies.

  Net Profits Y-o-Y Change Dividend
SIA $90.1 m – 54.0% 6.0 cents
Keppel Corp $346 m – 14.7%  
SembCorp Marine $115.5 m – 48.1%  

Let’s see how share prices moved after release of quarterly results.

  Before release Today (2.11 pm) Change
SIA $10.58 $10.47 (cum div) – 1.0%
Keppel Corp $11.21 (12.10.12) $10.58 – 5.6%
SembCorp Marine $4.70 $4.45 – 5.3%
SembCorp Ind $5.35 $5.15 – 3.7%

Sembcorp Marine released its results last night and today its share declined 5.3% (as at 2.11 pm). SembCorp Marine is a subsidiary of SembCorp Industries and the latter share price declined 3.7% as a consequence.

Keppel Corp released its results on 18 October and its share price had declined 5.6% since 12 October.

SIA released its results over the weekend. Its share price only declined 1.0% or 1.6% ex-dividend. SIA’s share price held up quite well despite a poor result.

In general, investors are less forgiving when it comes to earnings results. If earning is below expectation, investors of the counter sell down their holdings.

Copyright © 2012, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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One Response to Investors took flight on earnings disappointment

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