The Australian share market has managed to rise steadily on Wednesday despite a string of disappointing earnings results. The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is up 0.5%, largely thanks to a 47% rise in Toll Holdings Limited (ASX: TOL) stock after it reportedly accepted a massive takeover bid.
Despite the market's strength however, a number of stocks are also weighing the bourse down. Below are five of the worst performing stocks today.
Genworth Mortgage Insurance Australia (ASX: GMA) has watched its shares crumble more than 23% after Westpac Banking Corp (ASX: WBC) said it would terminate its Lenders Mortgage Insurance (LMI) agreement with the company on Tuesday. In 2014, the LMI business written under the Westpac contract accounted for 14% of Gross Written Premium (GWP), equating to around $89 million.
Ardent Leisure Group (ASX: AAD) suffered a crushing blow after it reported net profit of just $18.8 million for the half-year to 31 December, a fall of 16.3% compared to the prior corresponding period. Although it managed to boost revenues over the period, the company's Health Club division continued to experience difficult trading conditions with earnings before interest, tax, depreciation and amortisation (EBITDA) down 11.1%. The stock fell 12.8% to trade at $2.41.
Primary Health Care Limited (ASX: PRY) announced a 6.2% increase in net profit to $53.4 million for the six months to December, which came in well below analysts' expectations. As reported by the Fairfax press, analysts surveyed by Bloomberg were expecting a net profit of $82.9 million for the period. The company also announced that it had appointed Peter Gregg, a former Leighton Holdings Limited (ASX: LEI) deputy CEO, as its new Managing Director. The stock fell 5.5% to be trading at $4.64.
BC Iron Limited (ASX: BCI) shareholders have watched their stock fall another 5.4% today, taking the shares to just 53 cents per unit after the price of iron ore retreated 3.5% overnight. The stock has fallen an agonising 90% over the last 12 months as a result of the commodity's crashing price, with many investors concerned the miner will not be able to survive should prices fall any further.
Insurance Australia Group Ltd (ASX: IAG) reported a 9.8% decline in net profit this morning which it blamed on an "increasingly competitive environment". Its underlying margin also took a hit, falling to 13.3% from 13.7% as a result of its acquisition of Wesfarmers Ltd's (ASX: WES) insurance underwriting arm, and its dividend remained unchanged at 13 cents (fully franked). Investors punished the stock, selling it down by as much as 10.3% to $5.73.
