G8 Education (GEM) gets taught a lesson from the market

G8 Education (GEM) –16.06%; a tough start to the year for G8 which saw earnings squeezed by higher costs and an oversupply of childcare spaces dragged on occupancy and thus earnings. The company remains cautious heading into the year-end despite seeing signs of moderating supply growth and some benefit from the Government’s childcare subsidy. Full year EBIT guidance for $140m-$145m was well below the market’s expected $172m and the stock was smashed as a result.

G8 Education (GEM) Chart