The share price of a2 Milk Company Ltd (Australia) (ASX: A2M) has fallen further from its perch today, shedding 9.4% to trade at $1.69. For the sake of comparison, it hit a high of $2.30 on Wednesday.
The a2 Milk Company's shares surged higher earlier in the week on the back of another solid earnings report and, perhaps more importantly, another upgrade to its full-year earnings guidance.
But investors have since taken their foot off the accelerator with the company's shares. The situation was exacerbated today when a2 Milk's rival, Bellamy's Australia Ltd (ASX: BAL), reported its own earnings results.
The results were solid, as was the outlook, which you can read more about here. But investors may still have been disappointed that the company didn't guide for even greater sales than it did, whilst also being disappointed that the company's earnings before interest and tax (EBIT) margin wasn't expected to improve even further in the second half.
Both companies have the potential to grow further in the coming years, and are well worth a position on your watchlist.
