RE:RE:RE:RE:POFS including managementGuidance will be lowered. A 20% fx rate drop where 60% of revenue / EBITDA is derived from = lower second half year guidance when original guidance was based on a constant currency basis. Natural hedges can offset the ill effects of the fx drop, but they report in USD and a (60% X 20% drop = a 12% overall revenue drop) will lead to decreased revenue guidance at the least. There will be positives such as decreased USD denominated debt but the revenue and EBITDA guidance will have to be lowered unless they have 12% organic growth in store for the second half of the year.
I hope I'm wrong btw.
Lumberfeverlong wrote: To all self-anointed securities lawyers on this board, if and when it becomes clear to management that a previously issued guidance it will not be met, a company has an obligation to immediately disclose that guidance will not be met. If no disclosure has been made thus far, management still believes guidance will be met. I am a securities lawyer. So stop theorizing as to whether the company will meet guidance. Management still believes the company will meet guidance otherwise a press release would have been issued to the contrary. Moreover, shortly after the Brezit vote the company disclosed their natural hedge would mitigate against the effects of a lower pound for 2016 and that the company was performing operationally as expected. If that wasn't a reaffirmation of guidance just a few weeks ago, I don't know what else would be. This is pure panic selling based on the BS manipulation by shorts. This is a golden opportunity to buy more shares. I wish I had more dry powder to do so. For those who do, you know what to do before Q2 release. It will be to late after that. GLTAL and big finger to all shorts!