In one of the worst corporate earnings season, over a dozen Nairobi Securities Exchange-listed firms have issued profit warnings
. They have joined a growing list of firms that are expected to report lower earnings attributed to last year's tough operating environment and other internal challenges.
The magnitude and timing of the stock return reaction to bad news, of which profit warning
is but one example, may be related to market conditions and firm characteristics.
There were 54 profit warnings
issued by UK quoted companies during the first quarter of 2010 compared to 117 in the same quarter of 2009, a year-on-year fall of 54%.
Ericsson's profit warning
immediately strengthened a downward trend in the stock markets on both sides of the Atlantic.
The airline's woes hit its rivals as the profit warning
scared off investors already wary of widespread problems besetting an ailing sector.
According to EY's latest Profit Warnings
report, the UK saw an increase in profit warnings
with 5.4 per cent (77) of UK quoted companies issuing profit alerts in Q1 2015 - the highest first quarter percentage since 2009.
The chain was forced to issue a profit warning
six weeks after revealing group worldwide sales fell 6.1% in the 12 weeks to January 4, with UK takings down 4%.
Migdal said that it was issuing the profit warning
because of 'information included in reports to the public by Generali, the controlling shareholder in the company, in Italy.'
Danish fine chemicals group Auriga Industries A/S (OMX Copenhagen:AURI B) issued a profit warning
on Friday (30 January), saying that its full-year figures will not reach up to previous expectations.
The most common reasons for issuing a profit warning
in the North-east were increasing costs and overheads; sales short of forecasts; and difficult trading conditions.
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Israel Discount Bank (TASE: DSCT) has become the third bank in Israel to issue a profit warning