March 18 (Reuters) - Shares of Moonpig jumped 9% in early trading on Wednesday after the online greeting card retailer launched a 65-million-pound ($86.81 million) share buyback, signalling confidence
Moonpig Shares Jump as £65 Million Buyback Signals Strong Growth Ahead
Moonpig's Buyback and Growth Outlook
March 18 (Reuters) - Shares of Moonpig jumped 9% in early trading on Wednesday after the online greeting card retailer launched a 65-million-pound ($86.81 million) share buyback, signalling confidence in its prospects for fiscal 2027 following robust forecasts for the current year ending April.
Leadership and Strategic Initiatives
The outlook comes after new CEO Catherine Faiers took over the helm earlier this month, as Moonpig looks to bolster its offerings and invest in technology to drive growth and demand for its products and services.
CEO Catherine Faiers' Vision
"Looking ahead, I see a clear opportunity to build on our proprietary data and strong customer relationships," Faiers said in a statement.
Financial Performance and Market Reaction
- Shares up 6.2% at 224 pence by 0845 GMT.
- The company also expects growth in adjusted earnings per share to be at the top-end of its guidance of 8% to 12% growth for fiscal 2026, supported by strong free cash flow generation and the impact of buybacks.
- Moonpig also expects to deliver high-single-digit percentage revenue growth and mid-single-digit percentage growth in adjusted core profit. Analysts are expecting revenue growth of 6.9%, according to a company-compiled consensus.
Industry and Consumer Sentiment
- The outlook comes despite British consumers turning their least confident since the start of last year following the outbreak of war in the Middle East, according to a survey on Monday from financial data firm S&P Global.
- JP Morgan analysts said there is little direct impact to Moonpig from events in the Middle East, with the main potential concern being any slowdown in the consumer environment.
Exchange Rate Information
($1 = 0.7488 pounds)
Reporting Credits
(Reporting by Neeshita Beura and Pushkala Aripaka in Bengaluru; Editing by Nivedita Bhattacharjee)
