Why these 4 shares are cratering today

The S&P/ASX 200 (Index: ^AXJO) (ASX:XJO) might be rebounding today, but these four shares haven't been so lucky.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It has been another hectic day of earnings results, although the S&P/ASX 200 (Index: ^AXJO) (ASX:XJO) has managed to rebound strongly today and at lunchtime was trading around 1% higher to 5,569 points.

The financial and healthcare sectors are leading the way, with the energy and gold sectors lagging behind.

Four shares that have missed out on today's rally, include:

Monadelphous Group Limited (ASX: MND)

Monadelphous shares have fallen by more than 18% today to make it the ASX200's worst performing stock. Investors have been left disappointed with the mining services company's full year result that revealed a 26.8% fall in revenue and 36.7% fall in net profit after tax (NPAT). The result clearly demonstrated the challenges still facing the mining services sector and, unfortunately for investors, Monadelphous expects the resources and energy markets to remain challenging over the medium term. Although today's share price fall was dramatic, shares of Monadelphous have still gained around 33% over the past 12 months.

Bradken Limited (ASX: BKN)

Bradken shares plunged by as much as 22% in early trading, although they have managed to trim back most of those losses and are currently trading 6.4% lower to $2.04 per share. Like Monadelphous, the mining and industrial services provider had to deal with challenging market conditions and this resulted in a 15.2% decline in sales and 13% fall in underlying NPAT. Conditions in most of Bradken's core markets are expected to remain subdued in the short term, although management expects FY17 underlying EBITDA to be similar to FY16. Despite today's share price decline, Bradken shares have still managed to gain over 90% over the last year.

Lovisa Holdings Ltd (ASX: LOV)

Shares of Lovisa have fallen by as much as 13% today after the fashion jewellery retailer posted a 46% fall in NPAT to $16.5 million. Although the company managed to increase sales by 14.3%, margins were negatively impacted by heavy discounting and unfavourable currency movements. As highlighted here, the company did provide an upbeat earnings outlook and expects margin improvement over the next 12 months, along with the addition of 20 to 30 new store openings. The shares have managed to claw back some of their earlier losses and are currently trading around 7.5% lower at $2.77.

Acrux Limited (ASX: ACR)

Shares of the pharmaceutical company have plunged more than 37% today after it announced a US court has ruled that its Axiron testosterone treatment patents are not valid and would not be infringed by generic competitors. This is a major blow to Acrux as it means cheaper generic alternatives of its treatment can now be sold in the US. The company expects that the court decision will cause a material decline in sales and associated royalties, although the exact impact is unclear at this stage. Acrux and its marketing partner, Eli Lilly, are now reviewing the decision and considering whether to appeal the ruling.

Motley Fool contributor Christopher Georges has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »