Although the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) closed the day lower on Thursday, the benchmark index finished the month with a solid 3.9% gain.
Unfortunately, not all shares were able to follow the market higher.
The four shares listed below were the worst performers on the ASX 200 in January:
The Costa Group Holdings Ltd (ASX: CGC) share price was the worst performer on the ASX 200 with a 25% decline. Investors sold off the horticulture company's shares in a hurry after a surprising profit warning early in the month. Due to a decline in demand for its tomatoes, berries, and avocados, Costa is going to fall short of its calendar year 2018 guidance. Furthermore, management warned that its low double-digit earnings growth guidance for the 12 months to June 2019 would not be achieved if conditions didn't improve.
The Challenger Ltd (ASX: CGF) share price wasn't far behind with a 24% decline. Investors hit the sell button en masse in January after the annuities company downgraded its full year profit guidance following a disappointing first half performance. Challenger now expects to report a full year normalised net profit before tax of $545 million to $565 million in FY 2019. At best this will be an increase of 3.2% and at worst a decline of 0.5%, whereas previous guidance was for annual growth of between 8% and 12%. Management blamed the poor performance on increased market volatility and declines in performance fees.
The ResMed Inc. (ASX: RMD) share price dropped 18% in January. The sleep treatment-focused medical device company's shares came under pressure after its second quarter result wasn't as strong as the market expected. ResMed achieved sales of US$651 million during the quarter, up 8% on the prior corresponding period. Although sales grew 9% in the key United States market, a 2% decline in its Rest of the World segment spooked investors.
The Elders Ltd (ASX: ELD) share price fell 11% during the month despite there being no news out of the agribusiness company. The company's shares have been on a downward trend since the release of its full year results in the middle November. Investors may be concerned that the droughts are impacting its business and could prevent it from hitting its 5% to 10% revenue growth target.
