Why Are Vodafone Shares Trading Lower Tuesday

Vodafone Group Plc (NASDAQ:VOD) stock dropped on Tuesday after sharing dismal preliminary FY23 results.
Vodafone reported revenue growth of 0.3% YoY to $49.05 billion, missing the consensus of $49.73 billion, driven by growth in Africa and higher equipment sales, offset by lower European service revenue.
The telecom firm posted an adjusted EPS of $0.12, missing the consensus of $1.15.
The Group service revenue grew by 2.2% Y/Y to $40.75 billion.
Operating profit expanded by 145.9% Y/Y to $15.34 billion, mainly reflecting a gain on the disposal of Vantage Towers.
Adjusted EBITDAaL declined by 1.3% to $15.74 billion due to higher energy costs and commercial underperformance in Germany.
Vodafone generated $5.2 billion in free cash flow.
Vodafone shared plans to slash 11,000 roles over three years, work to turn around its German business and initiate a "strategic review" of its Spanish unit.
In April, Vodafone disclosed Margherita Della Valle as the company's CEO.
Valle will also continue as the CFO pending the completion of the external search for a new finance chief.
Outlook: Vodafone slashed its FY24 revenue outlook to $16.099 billion - $16.313 billion, down from $16.099 billion - $16.635 billion.
Price Action: VOD shares traded lower by 5.53% at $10.60 in the premarket on the last check Tuesday.
Photo via Wikimedia Commons