Abcam PLC (LON:ABC) saw its shares take a tumble in early trading Monday despite double-digit growth in its underlying earnings (EBITDA) for the full year after its estimates for the new financial year missed expectations.
The AIM 100 supplier of research tools to the life sciences industry reported adjusted EBITDA for the year of £88.3mln, up 20.5% on the previous year, while revenues climbed 7.4% to £233.2mln (or 10.7% on a constant currency basis).
READ: Abcam forecasts double-digit revenue growth for full-year as it sees product growth across the board
The company also upped its final dividend for the year to 8.58p from 7.36p the year before, increasing its total dividend 17.9% to 12p per share.
The double-digit growth and dividend hike weren’t enough to placate shareholders though, with the stock tumbling 23.3% to 1,137p after Abcam forecast that its adjusted EBITDA margin for the new financial year would be around 36% because of increased investment in its strategic initiatives.
Analysts at City broker Peel Hunt said that margin forecast had come in “well below” their estimates of 39% for the new financial year, while also being less than the margin reported in the results, which grew to 37.9% from 33.8% the previous year.
The broker added that the full year adjusted EBITDA of £88.3mln had come in below analyst estimates of £90.4mln for the period and expected a “significant pull-back” in the share price in response.