What next for Moonpig shares? Investors await full year results for comments on spending habits after bumpy ride since stock market float
It’s been a bumpy ride for Moonpig investors since the greetings card seller floated in London in February last year.
Having listed at 350p, the stock hit 430p on day one and was close to 490p a year ago.
But it’s been downhill ever since, with high street rivals reopening after lockdown, the cost-of-living crisis eating into budgets, and concerns about its lofty valuation putting pressure on the shares.
So investors will be looking for good news when Moonpig publishes its full-year results on Wednesday. It remains upbeat and has raised forecasts for the year twice – last September and in April.
Analysts expect revenues of £300million for the year to April 2022 and profits of £39million, up from £32million 12 months earlier.
‘These full-year results will be judged against that guidance and also in the context of any financial forecasts that chief executive Nickyl Raithatha feels able to give for the new financial year to April 2023,’ said Russ Mould, investment director at AJ Bell.
The City expects revenues to rise to £352million this year and profits to hit £49million.
With inflation at a 40-year high, interest rates rising and fears of recession mounting, any commentary from Raithatha on current spending habits and the outlook will also be of interest.
Mould said areas of focus will include the average order value – £7.30 in the first half – business from repeat customers, which made up 89pc of trade, and the split between greeting cards and gifts.