Why Engineered Advanced Materials Producer Luxfer Shares Are Dipping Today

Luxfer Holdings PLC LXFR shares are trading lower by around 15% after it reported Q3 FY23 preliminary results.

The company expects Q3 net sales of $97 million (vs. $103.5 million street view) and adjusted earnings per share of about $0.04 (vs. consensus of $0.24). 

The company saw lower customer order demand due to macroeconomic challenges. On the supply chain front, LXFR witnessed continued disruption in domestic magnesium supply and cost pressures.

This majorly impacted the company's Graphic Arts business. LXFR is aiming to execute a turnaround plan to lower costs in the Graphic Arts Business, including a headcount reduction program. 

"When reporting our second quarter 2023 results and providing updated full year 2023 guidance in late July, we noted specific areas where our businesses were facing challenges with either waning demand or supply chain issues. These challenges persisted during the third quarter and our third quarter results fell well below our expectations," said CEO Andy Butcher.

"As a result, our full year 2023 results are now tracking meaningfully lower than the previously provided adjusted earnings per share guidance," he added.

LXFR will release Q3 earnings and Q4 outlook FY23 on October 26, 2023.

Price Action: LXFR shares are down 14.5% at $11.49 at last check Wednesday. 

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