IDP Education Ltd (IEL.AU) shares plummeted 31.99% in intraday trading, following a series of announcements that paint a challenging picture for the company's near-term future. The education services provider's stock took a severe hit as investors reacted to disappointing forecasts and growing uncertainties in key markets.
The company revealed that it expects student placement volumes for the fiscal year 2025 to decrease by 28% to 30%, a significant downturn that is likely to impact its revenue substantially. Adding to the gloomy outlook, IDP Education estimates its adjusted EBIT (Earnings Before Interest and Taxes) for FY25 to be in the range of A$115 million to A$125 million, which appears to be below market expectations.
Further compounding the company's challenges, IDP Education noted that the recent UK immigration policy white paper has heightened uncertainty in one of its key markets. This development could potentially affect international student flows to the UK, a crucial segment for the company's business. In response to these headwinds, the company stated that it is completing a detailed review of longer-term cost, productivity, investment, and commercial levers, signaling potential restructuring or strategic shifts to navigate the difficult environment ahead.
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