D-Day today for two companies in the listed education sector.
The first is for Vocation (VET), the embattled services supplier with troubles in Victoria, and perhaps federally.
It has promised to provide a trade and earnings update today after a review of its finances.
Investors and analysts see the group cutting earnings forecasts to below $50 million for the year to next June and don’t hold out much hope for the shares to improve on the level they were when trading was halted on Monday at 50c.
But it’s not all gloom and doom in this sector.
G8 Education’s (GEM) directors asked for the company’s shares to be suspended while they prepare a new earnings update for the year to December, with analysts saying it will be positive.
G8 is expected to provide earnings guidance above market consensus and lift the company’s dividend above the current payout.
While G8 does not have any guidance in the market, analysts expect the company to record $101 million earnings before interest and tax for the year to December 31 and 10c a share from 5c.
When the company went into a halt on Tuesday investors immediately feared a downgrade, but the suggestion is that the company will now report an upgrade.
G8 Education raised $100 million in fresh equity at $4.91 a share on October 22. The shares traded at $4.26 on Tuesday before the halt.
GEM 2Y – G8 Education set to upgrade earnings
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