Bin collector Bingo is now a midcap after being decapitated by a profit downgrade
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Waste management company Bingo Industries has become a midcap this morning after a bad earnings outlook halved its share price.
The company said full year earnings before interest, tax, depreciation and amortisation (EBITDA) was set to drop as much as 18 per cent, to $92 million.
It stock fell even more, dropping as much as 48 per cent to an all-time low of $1.20.
When the market closed on Friday afternoon, Bingo (ASX:BIN) had a market cap of $1.3 billion.
It’s now worth $699 million.
Bingo’s 2018 EBITDA was $93.7 million so the share price hit may not have been so bad, had the company not forecast 2019 earnings to touch $112 in previous guidance.
The company blamed a slow down in the construction sector for the reversal in its fortunes.
Bingo CEO Daniel Tartak said he remained positive despite the “disappointing” revised guidance.
“While we have seen headwinds in some of our key markets in FY19 we expect the construction market to remain strong, with overall volumes of construction activity in NSW and Victoria of over $130 billion,” he said.
“We remain committed to our five-year strategy and our focus for the coming year will continue to be on optimising our network of waste assets in both NSW and Victoria, with the aim of delivering greater efficiencies and improvements in operations in preparation for future growth.
“FY20 will be a transformational year for Bingo as we achieve several key milestones in our redevelopment program, including the commencement of operations at our new recycling and landfill asset, Patons Lane.”