Shares of leasing specialist Grenke experienced a severe downturn on Wednesday, plummeting by up to 29% to €18.14, its lowest point in over two years. The company's unexpected profit warning, citing rising insolvencies among existing customers and resulting higher payment defaults, triggered this sharp decline. Grenke significantly reduced its profit forecast for the current year, now anticipating a decrease to between €68 and €76 million, a stark contrast to the previously projected increase to €95-€115 million.
Analysts Blindsided by Abrupt Forecast Revision
The revised outlook falls far below analysts' expectations, with experts expressing negative surprise at the sudden surge in loss rates. Market observers anticipate substantial downward revisions to estimates for upcoming years. The company's shares have already underperformed in the SDAX this year, losing approximately 22% of their value. Since the interim high at the beginning of the pandemic, the stock has shed over 80% of its worth. Despite these challenges, Grenke maintains that demand for leasing solutions remains stable.
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