Why On Holding Shares Are Plunging Today
Portfolio Pulse from Shivani Kumaresan
On Holding AG (NYSE:ONON) shares dropped after reporting Q4 FY23 earnings with sales growth of 21.9% to $504.23 million, missing estimates of $510.19 million. Adjusted EPS fell to $(0.06), below the $0.11 estimate. Despite a 38.2% increase in DTC sales and a 10.7% increase in wholesale sales, the stock fell 14.4% in premarket trading. The company forecasts a 26% net sales growth rate for Q1 2024 and expects at least CHF 2.25 billion in net sales for 2024.
March 12, 2024 | 1:16 pm
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On Holding AG reported lower-than-expected Q4 FY23 earnings, with sales and EPS missing estimates, leading to a 14.4% premarket stock drop.
The significant premarket drop in ONON's stock price is directly related to the company's Q4 earnings report, which showed both sales and EPS falling short of analyst expectations. This negative performance, especially in the context of financial markets where earnings reports are critical for investor sentiment, likely led to the sharp decline in stock price.
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