MF Global shares nosedived for the third time this year having been the subject of a substantial sell-off after it forecasted a shortfall in Q1 revenue. The company lost a third of its value after it said that revenue would total between $360m and $390m, falling short of analysts expectations that proceeds would amount to approximately $500m.
The embattled company did not provide a forecast for overall revenue or earnings, but it did add that the narrowing of short-term credit spreads hurt its quarterly profits.
As a result, stock tumbled 25.85% on June 18 plunging to a close of $7.83 each as shares of the Bermuda-based company hit their lowest level since late March.
The effect of the shortfall in MF Global’s expected revenue was further compelled by the news that it...