IHS Holding Ltd (NYSE: IHS) saw its stock price plummet 6.72% in pre-market trading on Tuesday, following the release of its first-quarter earnings report and the announcement of its Rwanda operations sale. The significant drop comes despite mixed financial results and a strategic divestment plan.
The company reported quarterly earnings of $0.10 per share, falling short of analyst expectations ranging from $0.12 to $0.17 per share. This earnings miss appears to be the primary driver behind the stock's sharp decline, overshadowing other potentially positive news. On a brighter note, IHS Holding's revenue for the quarter came in at $439.60 million, surpassing the analyst consensus estimate of $413.42 million and representing a 5.23% increase from the same period last year.
In a separate announcement, IHS Holding revealed its agreement to sell 100% of its Rwanda business to Paradigm Tower Ventures for an enterprise value of $274.5 million. The company expects to close this transaction in the second half of the year. While this strategic move could potentially streamline operations and boost liquidity, it seems investors are more focused on the earnings disappointment, leading to the significant stock price decline.
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