Suse shares drop by a third after guidance cut
22/09/2022 08:48
** Suse's SUSEG.DE shares slump 31% and are on track for
their worst day ever, after the software company released its
third-quarter results, cut its annual contract value
(ACV)estimates for 2022 urn:newsml:reuters.com:*:nTUC4HSFFF
** The Nuremberg-based firm reported a Q3 ACV at $114 mln,
9% below Vara consensus, and cut its FY 2022 ACV guidance to
around 10% from a previously forecasted mid-teens percentage
** The company cited the current macro-economic environment
impacting especially its Emerging business as reason for the cut
in guidance
** "Given the new lowered ACV guidance across both Core and
Emerging, we expect consensus ACV estimates for 2022 to be cut
by high-single-digit %, which will flow through to FY23 adj.
revenue estimates" J.P. Morgan says
** Suse shares fall to the bottom of the German smallcaps
index .SDAXI
(Reporting by Tristan Chabba)
((Tristan.chabba@thomsonreuters.com))