Australia's Sequoia Financial drops on lower earnings view

Sequoia Financial

23/11/2022 03:01

** Shares of investment manager Sequoia Financial  SEQ.AX 
tumble as much as 12.3% to A$0.465, their lowest level since
April 20, 2021
    ** Says H1 FY23 EBITDA expected to be A$4 mln to A$5 mln,
compared with A$5.5 mln reported for H1 FY22 
    ** H1 results impacted by recently settled client
remediation payments related to an adviser terminated in 2019,
for A$2.5 mln 
    ** Adds that it is seeking recovery of the sum from its
insurer but is fully expensing the amount for H1 
    ** H1 net profit after tax (NPAT) seen at A$2.0 mln,
compared with A$2.6 mln a year ago 
    ** Stock on track for its worst intraday session since June
14
    ** Trading volumes near 11 times the 30-day average, with
about 1.8 mln shares traded so far
    ** Stock down 22.1% YTD, as of last close
 (Reporting by Harshita Swaminathan)
 ((Harshita.Swaminathan@thomsonreuters.com))