DMC Global Provides Business And Strategic Review Update; Announces Governance Changes; Now Sees Q3 Sales Of ~$152M Vs Prior Guidance Of $158M-$168M; Now Sees Adj. EBITDA ~$5M Vs. Prior Guidance Of $15M-$18M
Portfolio Pulse from Benzinga Newsdesk
DMC Global has revised its Q3 financial guidance, lowering expected sales and adjusted EBITDA due to weaker performance in its Arcadia and DynaEnergetics divisions. The company also announced a significant goodwill impairment charge related to its acquisition of Arcadia.
October 21, 2024 | 8:16 pm
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DMC Global has lowered its Q3 sales and adjusted EBITDA guidance due to weaker sales in its Arcadia and DynaEnergetics divisions. The company also announced a $142 million goodwill impairment charge related to its acquisition of Arcadia.
The downward revision in sales and EBITDA guidance indicates weaker-than-expected performance, which is likely to negatively impact investor sentiment and the stock price. The significant goodwill impairment charge further highlights challenges in the Arcadia division, adding to the negative outlook.
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