News: FLT Flight Centre Travel Group updates guidance for 12 months to June 30, 2017, page-29

@Warrigals

How fickle, short sighted and plain stupid the market is. Never ceases to amaze.

We have a business that operates on extremely fine margins. A TTV that grows in one year by a little less than expected easily results in a substantial drop in earnings, especially when costs are moderately increasing (due to deliberate expansion plans) and when income margins are a fraction lower than they could have been. Some call it operating leverage.

So what?

And yet the market gets all depressed, and HC gets flooded with prognostications of doom and gloom.

Of course it can also swing the other way. Or perhaps it didn't swing quite as far in the negative direction as what management thought it might.

So what?

And yet the market gets all excited, and HC gets flooded with prognostications of never ending blue sky.