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RDW
Forbes
35 days

Barratt Redrow Shares Dive 9% On Profit Warning, Completions Miss

1. Barratt Redrow shares dropped 9.4% after profit warnings and missed completions. 2. The company expects £248 million in legacy property liabilities post-Redrow acquisition. 3. Home completions fell to 16,565, below market expectations of 16,800-17,200. 4. Barratt maintains a target of 22,000 home completions amid cautious demand. 5. Analysts see mixed trends, with softening demand and high build costs affecting growth.

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FAQ

Why Bearish?

The significant drop in shares and profit warnings indicate investor concern, reminiscent of past market corrections where unforeseen liabilities led to downturns in similar firms.

How important is it?

The article highlights operational challenges for Barratt Redrow, indicating potential indirect effects on RDW due to industry dynamics.

Why Short Term?

Immediate market reactions are influenced by legacy liabilities and lower completions; future performance could improve if demand stabilizes.

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