Why IHS Holding Stock Dropped Today
Shares of IHS Holding (NYSE: IHS) -- also known as IHS Towers -- fell as much as 12% early Tuesday, then settled to close down 5% after the U.K.-based communications infrastructure company announced weaker-than-expected quarterly results.
For its third quarter of 2023, IHS' revenue declined 10.4% year over year, to $467 million, translating to an adjusted non-GAAP (generally accepted accounting principles) net loss of $0.48 per share. Analysts, on average, were anticipating earnings of $0.04 per share, but on lower revenue of $457.9 million.
To be fair, IHS' reported top-line results were impacted by a massive $214.5 foreign exchange headwind, primarily due to the 78.2% devaluation of the Nigerian naira (NGN) starting in mid-June 2023. Meanwhile, IHS' adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) declined 15.5% to $232 million.
Source Fool.com
