SEEK Limited (ASX: SEK) this week released a trading update that contained some disappointing news. SEEK’s learning division has not performed as well as hoped in the 2H15, and SEEK now expects the 2H15 NPAT to be broadly in line with the 1H15 – some 10% short of what was implied by broker consensus. There were a couple of issues noted, including IT problems related to an upgrade undertaken by TAFE NSW that has resulted in enrolment and withdrawal problems. SEEK had expected these problems to be resolved more quickly than they have been. SEEK also noted some pressures as a result of a more competitive environment for SEEK Learning, and flagged investment in new products and services. The markets response to this was decisive: SEEK shares declined by $2, or 12.3% on the day. Admittedly, SEEK trades on a robust multiple, and it is possible to quibble with the valuation at these levels. However, SEEK is a high quality business with attractive long term growth prospects, and its core business continues to track well. (VIEW LINK)