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There’s no pleasing some people.
Shares in Moneysupermarket have opened over 12 per cent lower, despite the price comparison company reporting a 14 per cent jump in profits for 2016.
Spoiling the party, the company also reported today that revenues are now lagging the pace set last year, though it is still confident of reaching targets.
At pixel time, shares are down 12.5 per cent at 307p.
The beating administered to stocks will come as a surprise to analysts, who have so far reacted mostly warmly to the results.
Liberum earlier kept its ‘hold’ recommendation on the shares, noting that there were “no major surprises” in the results.
Shore Capital also has a ‘buy’ recommendation, noting that it is “pleased” with “good trading momentum”:
We continue to believe that strength of brand, breadth and depth of inventory and its track record of delivering substantial savings to its customers (c.£1.8bn during 2016) means that Moneysupermarket is well placed to capitalise on attractive growth in switching activity. Potential increase in motor insurance premiums due to legislative change should also help to drive switching activity.