Why Ainsworth Game Technology, Inghams, Speedcast, & Virgin Australia shares sank lower

The Inghams Group Ltd (ASX:ING) share price and the Speedcast International Ltd (ASX:SDA) share price are two of four sinking lower on Wednesday…

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In afternoon trade the S&P/ASX 200 index is on course to record a solid gain. At the time of writing the benchmark index is up 0.3% to 6,491 points.

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

The Ainsworth Game Technology Limited (ASX: AGI) share price has tumbled 6% to 73 cents a day after the release of its full year results. On Tuesday the gaming technology company reported revenue of $234.3 million and a profit after tax of $10.9 million. This was a disappointing 12% and 66% decline, respectively, on the prior corresponding period. One broker that wasn't impressed was UBS. It held firm with its sell rating and cut the price target on its shares to 50 cents.

The Inghams Group Ltd (ASX: ING) share price has continued its slide and is down a further 4% to $3.21. The poultry producer's shares have come under pressure since the release of its full year results. Although it reported a 10.1% increase in NPAT to $126.2 million, investors appear to have been left concerned by its outlook. Due to increasing input costs and the higher costs associated with its Further Processing project, FY 2020 EBITDA is expected to be lower than FY 2019's underlying EBITDA.

The Speedcast International Ltd (ASX: SDA) share price has continued to sink and is down a further 23% to 87.3 cents. Investors have been hitting the sell button in a panic following the release of a disappointing half year result. In the first half of FY 2019 Speedcast posted a statutory loss after tax of $175.5 million. This was driven largely by a $154.8 million negative impact from the impairment of goodwill relating to the performance of its Non-Government operating segment. Its debt also increased to over $600 million, which is now almost triple its market capitalisation.

The Virgin Australia Holdings Ltd (ASX: VAH) share price has tumbled 6% to 15.5 cents following the release of the airline's full year results. Virgin Australia reported a massive statutory loss after tax of $315.4 million in FY 2019. This was inclusive of non-cash impairments of the Tigerair and VA International business units, de-recognition of deferred tax assets, and restructure costs.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

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