You'd think with the ALL Ordinaries (Index: ^AORD) (ASX: XAO) soaring 1.2%, there'd be very few companies in the red today – but you'd be wrong.
Whilst we don't ordinarily pay much attention to daily share price movements, some can be the result of significant changes to a company's future earnings outlook.
Here are 5 stocks sold off by the market today…
Senetas Corporation Limited (ASX: SEN) share price crashed 10.3% to $0.175, despite delivering a 36% increase in net profit after tax to $4 million for the 2015 financial year. Operating cash flow surged to $9.6 million. But investors may have been spooked by Senetas announcing that profit growth may moderate from that achieved in 2015 due to business reinvestment. Those investors may be short-sighted.
iSelect Ltd (ASX: ISU) share price dropped 12.6% to $1.52. The health insurance comparison website today reported a 17% increase in net profit after tax to $21.4 million, but the company's outlook for the year ahead suggests earnings will only grow moderately. A number of other indicators suggest iSelect may struggle to generate meaningful growth – as we highlighted here. Maybe it's because iSelect's model has attracted a number of competitors – not to mention a free government comparison site that offers more products than iSelect's.
Bradken Limited (ASX: BKN) share price fell 9.5% to $1.14, despite no news from the mining consumables company. Bradken's share price has been very volatile of late, with a number of proposed takeovers sliding by the wayside. That may have been due to weak financial results for the last financial year as colleague Matt Brazier pointed out a few weeks ago.
Boral Limited (ASX: BLD) share price slumped 8% to $5.78 despite reporting strong growth in net profit after tax of 45% to $249 million. You can read the full details here, but the fall in the share price may have nothing to do with today's results. Boral has been black-banned by the CFMEU from supplying large parts of Melbourne's construction industry since 2013 and is taking the Union to court for losses of more than $20 million. Boral also provided a soft outlook for the year ahead, disappointing investors.
Worleyparsons Limited (ASX: WOR) share price slipped 5.3% to $7.70, reversing all of the gains from yesterday and more. As my colleague Ryan Newman reported yesterday, 'it was a shocking year for Worleyparsons'. Thanks to multi-year low prices for oil and other commodities, Worleyparsons is fully exposed to customers cutting costs – including the services the company provides. 2016 isn't looking any better either.
