So far this earnings season there have been several shares that have fallen short of expectations and as a result have plunged significantly lower.
I thought I would take a look to see if this has created an opportunity for bargain hunters to snap up quality shares at a cheaper price.
Here are two that have fallen heavily:
The Domino's Pizza Enterprises Ltd. (ASX: DMP) share price has fallen almost 13% since it released its full-year results. Although net profit rose 28.8%, this missed its guidance of growth in the region of 32.5%. Whilst the result was a bit of a disappointment, I believe the sell-off has left its shares changing at a very reasonable price.
Especially with the long runway for growth the company has. Over the next eight years Domino's plans to increase its margins substantially and double its store footprint. I believe this will result in strong long-term profit growth which makes it a great buy and hold investment option.
The Telstra Corporation Ltd (ASX: TLS) share price plunged 8% following the release of its full-year results. Whilst the telecommunications giant delivered a solid result, its decision to cut its FY 2018 dividend to 22 cents per share didn't go down well with the market. Although a cut was widely expected, one of this magnitude came as a surprise.
At the current share price Telstra's shares will provide a fully franked 5.6% dividend over the next 12 months. This is still a great yield and could still be a great option for income investors in my opinion. Especially if you are confident in management's plan to reinvest its earnings to fuel future growth. I'd class Telstra as a buy at the current share price, but I wouldn't expect any fireworks over the next 12 months.