It's been a terrible start to the week for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO), with almost every sector deep in the red today. The benchmark index is down 1.1% to 5,454 points in afternoon trade.
The following four shares have had a particularly bad day. Here's why:
Adairs Ltd (ASX: ADH) shares have dropped 6% to $2.47 just one trading day after announcing a strong full year result. On Friday the leading retailer of manchester and homewares posted an 18.9% increase in net profit after tax to $26.1 million. This result was an impressive 7.1% ahead of its prospectus forecast, but still not enough to keep some investors from heading to the exits today. With the US Federal Reserve looking like it could actually raise rates this year, investors may be concerned about the damage a weaker Australian dollar will do to Adairs' margins as a result of higher input costs.
Amaysim Australia Ltd (ASX: AYS) shares have continued their decline, this time by a further 8% to $1.89. Amaysim's shares went on a tear just over a week ago following the release of full year results that revealed underlying net profit after tax growth of 110.5% to $20 million. But since then they have given back almost all these gains, dropping 15% in the last three trading days. Although it is not something I would choose to invest in currently, I'm sure there will be many bargain hunters sizing it up after such a sharp drop.
Estia Health Ltd (ASX: EHE) shares have plummeted 17% to $4.08 despite releasing a fairly solid full year result culminating in a 16% increase in net profit after tax to $51.8 million. The sell off is likely to be the result of the company's underwhelming outlook, which saw management forecast EBITDA growth of around 13% in FY 2017. Furthermore, CEO Paul Gregersen has said that Estia Health's performance will be impacted by the government's cuts to the Aged Care Funding instrument and consumer preferences for accommodation payments.
Netcomm Wireless Ltd (ASX: NTC) shares have dropped 3% to $2.66 following the release of disappointing full year results. The developer and supplier of broadband products posted a 19.6% drop in earnings per share despite a 14.8% jump in sales to $85.3 million. This result means its shares are now changing hands at 172x full year earnings. Although it does have strong growth prospects, I'm not sure I could justify paying such a premium.
