Cavalier bounces back from Friday's plunge

Carpet-maker Cavalier Corporation has bounced back from a 12% plunge last week after a cut in earnings guidance.

Cavalier shares (NZX: CAV) are up 7.1% to $1.66 on light trading this morning, after starting the year at $1.93.

By 3pm, the shares had eased to $1.63.

Managing director Colin McKenzie told shareholders at last Friday's annual meeting a slow start to the first quarter and a subdued Australian market led to the earnings guidance cut.

It is now predicting normalised, tax-paid earnings of between $6 million and $10 million.

The company will not pay an interim divided but has indicated it will pay a final dividend if earnings gather pace in the second half, as expected.

Mr McKenzie told NBR ONLINE the company will announce further cost-cutting measures before Christmas.

Broking firm Forsyth Barr upgraded its recommendation from hold to accumulate after Friday's meeting.

"Cavalier is making progress in repositioning its carpet busines in respect of its cost structure, capacity and product portfolio," ForBarr analyst John Cairns says in a research note.

dwilliams@nbr.co.nz


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7282 -0.0001 -0.01%
AUD 0.9496 0.0030 0.32%
EUR 0.6481 -0.0008 -0.12%
GBP 0.5610 0.0025 0.45%
HKD 5.6459 0.0007 0.01%
JPY 73.9540 0.4370 0.59%

Commods

Commodity Price Change Time
Gold Index 1319.6 -1.410 2016-09-29T00:
Oil Brent 49.8 0.570 2016-09-29T00:
Oil Nymex 47.8 0.780 2016-09-29T00:
Silver Index 19.2 0.070 2016-09-29T00:

Indices

Symbol Open High Last %
NZX 50 7343.4 7361.1 7343.4 0.24%
NASDAQ 5311.3 5317.0 5318.5 -0.93%
DAX 10240.7 10323.5 10405.5 -0.97%
DJI 18322.9 18366.2 18339.2 -1.07%
FTSE 6919.4 6919.4 6919.4 -0.78%
HKSE 23435.3 23484.4 23739.5 -1.86%
NI225 16474.5 16497.5 16693.7 -1.46%
ASX 5471.3 5471.3 5471.3 -0.65%