Why these 4 ASX shares are tumbling lower today

The Speedcast International Ltd (ASX:SDA) share price is one of four tumbling lower on Wednesday. Here's why…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is on course for a third successive day of gains and is up 0.4% to 6,331.8 points in afternoon trade.

Four shares that have failed to follow the market higher today are listed below. Here's why they are tumbling lower today:

The Cabcharge Australia Limited (ASX: CAB) share price has fallen 7.5% to $2.09 after the release of its full year results. Although the payments company reported a solid 22% increase in revenue to $185.5 million, its underlying profit after tax sank by a sizeable 36.2% to $13.6 million. This forced the Cabcharge board to slash its full year dividend down to 8 cents from 20 cents in FY 2017.

The ELMO Software Ltd (ASX: ELO) share price has tumbled 4.5% to $7.16 following the release of its full year results. The technology company's shares were down as much as 15% at one stage before bouncing back strongly after lunch. The catalyst for the sell-off may have been its EBITDA guidance for the year ahead which overshadowed an impressive full year result.

The Experience Co Ltd (ASX: EXP) share price has fallen a little over 3% to 44.5 cents after the adventure company posted full year revenue of $135.3 million and normalised EBITDAI of $30.2 million. This was a 51.1% and 34.8% increase, respectively, on FY 2017's result. Earnings per share came in at 1.34 cents, meaning its shares are changing hands at 33x earnings now. Which I think is reasonably good value considering its guidance for EBITDAI growth of between 22% and 36% in FY 2019.

The Speedcast International Ltd (ASX: SDA) share price has continued its decline and is down a further 5.5% to $3.97. The remote communications and IT services provider's shares plunged lower on Tuesday after it downgraded its full year guidance. This led to Morgans downgrading its shares from an add rating to hold with a reduced price target of $4.09. I would have to agree with Morgans on this rating.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended ELMOSFTWRE FPO. The Motley Fool Australia owns shares of EXPERNCECO FPO. 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 Scott Phillips.

More on Share Fallers

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Core Lithium, Duratec, Galan Lithium, and Michael Hill shares are sinking today

These shares are starting the week in the red. But why?

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Share Fallers

Why did the Core Lithium share price just crash 6%?

Investors are bidding down the Core Lithium share price today.

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Clearview, Loyal Lithium, Polynovo, and Weebit Nano shares are falling

These shares are ending the week deep in the red. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why IDP Education, JB Hi-Fi, PYC, and Renascor shares are falling today

These shares are missing out on the good times on Thursday. But why?

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Fletcher Building, Healius, Iperionx, and Iress shares are sinking today

These shares are having a tough time on hump day. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Boss Energy, Meteoric Resources, Pantoro, and Worley shares are falling today

These shares are having a tough session today. But why?

Read more »

Bored man sitting at his desk with his laptop.
Share Fallers

Why ANZ, Fletcher Building, Macquarie, and Sayona Mining shares are dropping today

These ASX shares are starting the week in the red. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Cettire, De Grey Mining, Life360, and Neuren shares are falling today

These ASX shares are ending the week in the red. But why?

Read more »