pixelparticle/iStock via Getty Images
- Redwire (RDW -12.5%) shares drop as the space company that specializes in acquisitions announces that it will reschedule its Q3 earnings results. Redwire previously put out a press release on Nov. 4 saying that it would report Q3 results on Nov. 10 before the market opened.
- The fact that the company did not provide a reason for the delay is causing fear, uncertainty, and doubt among investors holding the stock.
- The hold up could signify a major announcement - either positive or negative, but it could also just be an accounting or technical issue that the company was unable to resolve in time given the complexity of its operations.
- According to research from UCLA, 30% of companies that choose to delay earnings end up reporting positive earnings surprises. Investors generally don't reward the good news though. The study found that share prices of late reporters that provided good news linked to tax-expense management fell 1% over the two days following the new announcement.
- Investors will have to wait until the company provides an update on a new date or any potential issues.
- SA contributor writes that Redwire's valuation seems cheap, but that the company has yet to prove itself.