Experience Co Limited [ASX: EXP] was one of the worst performing stocks on the ASX yesterday, the share price had dropped by over 17%.
Shares are currently trading at 59 cents, after closing on Friday at 71 cents. This is the single biggest day drop for the company since its listing on the ASX in 2015.
Experience Co is an adventure and tourism leisure company. They offer adventure activities such as tandem skydiving and white water rafting in 18 locations in Australia and 3 locations in New Zealand.
How Experience Co’s share price dropped
The fallen share price followed shortly after the release of a trading update by the company yesterday morning.
The announcement revealed that unfavourable adverse weather patterns throughout the March quarter and the month of April led to a significant drop in customer bookings and trading days.
The total average processing rates for March were 75%, down from 84% the year prior.
Experience Co highlighted that both March and April are generally considered peak times for the business, in which they usually seek to hire more staff due to the large number of customers. Though this year was very different.
This meant that earnings for this period fell well short of expected, forcing management to downgrade guidance for FY18.
The company now expects revenue to come in between $127 million to $130 million, in comparison to the previous forecast of $135 million to $140 million.
What’s next for Experience Co?
Management noted that the updated guidance is subject to normal weather patterns returning for the remainder of the year.
Despite the minor setback, Experience Co, due to recent acquisitions, is expecting to experience organic growth from its adventure activities in FY19 and beyond.
Markets & Money
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