. The following information from a business article titled, “PLDT cuts full-year profit forecast after third-quarter results disappoint” was posted on Interaksyon.com (Date accessed: March 11, 2015) on November 4, 2014. From the article, PLDT management reported that PLDT’s 2014 third-quarter net income was down to P7.9 billion in the same period in 2013. “Our third quarter results reflect intensifying competition in the cellular space of our business, to which we have taken measures to respond to competition and stabilize our share of market. Smart, Sun and Talk N’ Text undertook to match or neutralize price aggression on the prepaid front, effectively lowering price points for the same level of activity”, “Manuel V. Pangilinan*, PLDT Chairman said*.” “Based on this market assessment and on the information available to the company, PLDT is revising its profit guidance for the full-year to P37 billion from the P39.5 billion previously disclosed,” Mr. Pangilinan said. Question: How do you think will PLDT investors react to this piece of information? “What do you think* will happen to its stock price*?” Explain your answer.
. The following information from a business article titled, “PLDT cuts full-year profit forecast after third-quarter results disappoint” was posted on Interaksyon.com (Date accessed: March 11, 2015) on November 4, 2014. From the article, PLDT management reported that PLDT’s 2014 third-quarter net income was down to P7.9 billion in the same period in 2013. “Our third quarter results reflect intensifying competition in the cellular space of our business, to which we have taken measures to respond to competition and stabilize our share of market. Smart, Sun and Talk N’ Text undertook to match or neutralize price aggression on the prepaid front, effectively lowering price points for the same level of activity”, “Manuel V. Pangilinan*, PLDT Chairman said*.” “Based on this market assessment and on the information available to the company, PLDT is revising its profit guidance for the full-year to P37 billion from the P39.5 billion previously disclosed,” Mr. Pangilinan said. Question: How do you think will PLDT investors react to this piece of information? “What do you think* will happen to its stock price*?” Explain your answer.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
a. The following information from a business article titled, “PLDT cuts full-year profit forecast after third-quarter results disappoint” was posted on Interaksyon.com (Date accessed: March 11, 2015) on November 4, 2014. From the article, PLDT management reported that PLDT’s 2014 third-quarter net income was down to P7.9 billion in the same period in 2013.
“Our third quarter results reflect intensifying competition in the cellular space of our business, to which we have taken measures to respond to competition and stabilize our share of market. Smart, Sun and Talk N’ Text undertook to match or neutralize price aggression on the prepaid front, effectively lowering price points for the same level of activity”, “Manuel V. Pangilinan*, PLDT Chairman said*.”
“Based on this market assessment and on the information available to the company, PLDT is revising its profit guidance for the full-year to P37 billion from the P39.5 billion previously disclosed,” Mr. Pangilinan said.
Question: How do you think will PLDT investors react to this piece of information? “What do you think* will happen to its stock price*?” Explain your answer.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education