Shares of Seek Ltd. [ASX:SEK] dropped 4.21% today. Shares went from trading at $17.83 yesterday down to as low as $16.36, before recovering to $17.08 at time of writing.
Why did the shares drop 4.21%?
The company released its full-year report, announcing that earnings fell short of expectations, to $340.2 million, 5% less than the previous $357.1 million.
Yet the company’s underlying net profit after tax — excluding significant assets — grew 11%, with revenues across its Australian and New Zealand operations growing 14%.
The company has declared a fully franked dividend of 21 cents per share to be paid on 13 October, bringing the total FY17 dividend to 44 cents. This represents an 11% increase compared to the final dividend in the previous year.
Seek, as well as Domino’s, is one of the stocks being targeted by short sellers this week. It has 6.7% of outstanding shares shorted, as you can see in the graph below, prepared by Richard Coppleson from Bell Potter.
Source: Bell Potter/Sydney Morning Herald
What now for ASX:SEK?
Seek has a very positive outlook for FY18, with projected revenue growth in the range of 20% to 25% and an approximate 10% EBITDA increase.
As Chief Executive Officer and co-founder Andrew Bassat commented:
‘SEEK has very exciting growth prospects. We are uniquely positioned due to our strong market leadership in large markets and our deep relationships with candidates and hirers. We believe the right thing to do is to invest and evolve our businesses to capitalise on these significant growth opportunities.’
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