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Why these 4 shares are cratering today

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.

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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.

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