Aristocrat Shares Drop After Forecast Cut by 40 Percent

31 October 2008

The Australian reports that when Aristocrat Leisure Ltd., a slot machine manufacturer, cut annual profit forecasts by 40 percent on Tuesday, investors jumped ship causing the share price to sink from 5.50 Australian dollars to 3.96 Australian dollars, or 28 percent.

The decline caused the company to lose 710 million Australian dollars of its market value.

On Tuesday, the Sydney-based company dropped its earning expectations from 200 million Australian dollars to as low as 120 million Australian dollars for earnings before special items for the year to December 31.

The current share price at close today was 3.80 Australian dollars.