Dixons Carphone share price yo-yos after ‘clerical error’ in Christmas trading update
The UK-based electrical retailer and services company saw its share price yo-yo on Tuesday after re-issuing its Christmas trading update due to a 'clerical error'.
Dixons Carphone was forced to re-issue its Christmas trading update on Tuesday after reporting an incorrect sales figure, causing its share price to yo-yo.
The mistake, which was blamed on a ‘clerical error’, showed that the company had delivered sales growth of 2% when in fact the company’s revenues fell by 2%.
The error was noticed six hours into Tuesday’s trading session, with the stock rallying as much as 5% before sliding into negative territory after the mistake was flagged.
However, the stock then recovered with it up 5% to 150p a share as of 16:30 GMT.
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Dixons Carphone on track to hit targets despite weak consumer spending
Dixons Carphone remains on track to hit its financial targets, with its latest trading update showing strong consumer demand for super-ized TVs, gaming consoles and smart technology devices which helped offset a weak consumer spending in the UK market over the festive season.
‘The supersizing TV trend kept on giving as we sold 75% more 65”+ TVs, Dyson Health & Beauty sales were up over 20%, Shark Vacuum sales almost doubled and we sold 8000 smart speakers each day,’ Dixons Carphone chief executive officer (CEO) Alex Baldock said.
‘We broke records on wearables like Fitbit and Apple Airpods, while gamers couldn’t get enough of the Nintendo Switch,’ he added.
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Goldman Sachs upgrades Dixon Carphone to ‘buy’ in January
Analysts from Goldman Sachs upgraded Dixons Carphone from ‘neutral’ to a ‘buy’ rating in January and increased their target price for the stock to 170p a share.
Based on the stock trading at 150p, analysts from the US-based investment bank believe it has a potential upside of 13.3%.
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