It certainly isn't a quiet end to reporting season today with big name companies including Treasury Wine Estates Ltd (ASX: TWE) and Harvey Norman Holdings Limited (ASX: HVN) both reporting interim results.
Stealing the show however has been Australia's largest retailer and quintessential blue-chip, Woolworths Limited (ASX: WOW). It reported a set of results which shocked the market and sent the stock plummeting around 10%.
The market reacted swiftly to the retailer's updated guidance which saw management slash full year profit growth expectations to just 1.8%. The lowered growth forecast has been blamed on the group's decision to spend over $500 million on its supermarkets division to improve competitiveness. Other concerns for investors include a $103 million charge against inventory at Big W and further losses of $103 million within the start-up Hardware division.
One of the few bright spots for Woolworths' shareholders was an increase in the dividend payout to 67 cents per share (cps), from 65 cps in the prior corresponding period.
Another stock losing ground today is packaging company Pact Group Holdings Ltd (ASX: PGH), which has added to falls experienced earlier in the week by declining a further 4.6% today. For the week, shareholders are now sitting on a share price drop of nearly 12%. As highlighted here, the company reported a solid set of results which could make the current sell-off a buying opportunity.
Despite the drops in share price for Woolworths and Pact today, neither of these stocks are (as of mid-afternoon) the biggest decliner in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). That unlucky title goes to gold producer EVOLUTION FPO (ASX: EVN) which has fallen nearly 11% after announcing that gold mining giant Newcrest Mining Limited (ASX: NCM) has off-loaded half of its stake in EVOLUTION for $106 million, thereby reducing its position in the company to 15%.
