The S&P/ASX 200 index was on form last week and recorded a solid gain thanks to easing trade war tensions. The benchmark index rose 1.3% to finish it at 6,604.2 points.
Whilst a large portion of the index pushed higher, not all shares were so fortunate. In fact, some even fell heavily over the period.
Here's why these shares were the worst performers on the ASX 200 index last week:
The Speedcast International Ltd (ASX: SDA) share price was the worst performer on the index with a massive 54.8% decline. Investors were quick to sell the global satellite communications provider's shares after it released a very disappointing half year result. In the first half of FY 2019 Speedcast reported a 17.3% increase in revenue to $357.6 million, but 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. It also revealed a net debt of $625 million, which is now over three times larger than its market capitalisation.
The Inghams Group Ltd (ASX: ING) share price crashed 22.7% lower last week following the release of its full year results. Although the poultry producer delivered a 10.1% increase in NPAT to $126.2 million, investors appear to have been left concerned by management's outlook. Due to higher input costs and the higher costs of its Further Processing project, Inghams' FY 2020 EBITDA is expected to be lower than FY 2019's underlying EBITDA.
The Mayne Pharma Group Ltd (ASX: MYX) share price sank 15.2% last week. The pharmaceutical company's shares came under pressure after it posted a massive full year loss. During the 12 months to June 30, Mayne Pharma reported a 1% decline in revenue to $525.2 million, a 4% drop in reported EBITDA to $111.6 million, and a reported net loss after tax of $280.8 million. The latter was due largely to a non-cash (pre-tax) charge of $351.7 million relating to its intangible generic assets.
The Boral Limited (ASX: BLD) share price tumbled 14.3% lower last week. The catalyst for this decline was the building materials company's full year results. In FY 2019 Boral posted a 7% decline in adjusted earnings per share to 37.5 cents despite a 4% increase in revenue from continuing operations to $5.8 billion. Whilst this was disappointing and missed consensus expectations, its guidance for the year ahead appears to have done the most damage to investor sentiment. Management advised that it expects net profit to slide by 5% to 15% in FY 2020.
