There have been plenty of positive surprises from businesses reporting their earnings this week. But there have also been a number that have disappointed investors, sometimes resulting in sharp declines in those companies’ share prices.
Billing software provider Hansen Technologies Limited (ASX: HSN) disappointed Mr Market on Thursday. At one point, Hansen’s share price declined as much as 21.2% although they recovered much of that loss by the end of the session. Although the company managed to grow both revenue and earnings during the period – and confirmed it was still on track to meet its full-year guidance, it appears investors were disappointed with the group’s slower organic growth rate of 4.5% (compared to guidance of 4% to 8%).
The Prophecy International Holdings Limited (ASX: PRO) share price was hit for six earlier in the week, as well. Although it only released its preliminary results (it will release its audited results before the end of February), it revealed a heavy decline in sales of its SNARE product with half-year revenues for the group set to come in around $6 million. That’s short of the $8 million in sales it generated in the prior corresponding period.
Meanwhile, the Domino’s Pizza Enterprises Ltd. (ASX: DMP) share price was put through the oven on Wednesday, even though it increased its full-year earnings guidance. It said it expects its net profit to grow 32.5% compared to the 2016 financial year which would imply an NPAT result of $122 million, or $1.37 in earnings per share. According to Yahoo! Finance, however, that result is still short of what most analysts had been baking in at around $1.40 per share.
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Motley Fool contributor Ryan Newman owns shares of Hansen Technologies. The Motley Fool Australia owns shares of Hansen Technologies. 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.