Earnings season is always an eventful time of the year for the share market. Strong results have the potential to send shares to new highs, whereas poor results can send shares tumbling lower.
Three shares which didn’t fare too well during earnings season and have tumbled to 52-week lows are listed below. Are they bargain buys or best avoided?
The Hansen Technologies Limited (ASX: HSN) share price fell to a 52-week low of $3.12 on Thursday. This latest decline means its shares have now lost around 20% of their value since the billing solutions provider released its half-year results. Investors appear to have been disappointed with profit growth of 7% on the prior corresponding period. But with its shares changing hands at 21x trailing earnings now, I think Hansen is starting to look attractive again.
The iSentia Group Ltd (ASX: ISD) share price hit a new 52-week low of $1.46 yesterday. I can’t say I’m surprised to see its shares tumble following the release of the media monitoring company’s disastrous half-year report last month. The company reported a 17% drop in earnings per share thanks largely to management’s inability to turnaround the performance of its embattled content marketing business. Whilst its shares do look cheap, I would hold off an investment until there are signs of improvement.
The MMA Offshore Ltd (ASX: MRM) share price sank to a 52-week low of 20 cents on Thursday. Investors appear to have been heading to the exits in their droves following a poor half-year performance from the oil and gas supply vessel operator. For the six months ended December 31 the company posted a loss of $45.4 million pre-impairment. Including the impairment the loss extends to a whopping $323.7 million. Historically low vessel rates and utilisation are largely to blame. Unfortunately I can’t see a turnaround coming any time soon, so would suggest investors give the company a wide-berth.
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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. 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.