Why Gentrack, Mayne Pharma, Metcash, & Regional Express are dropping lower

The Mayne Pharma Group Ltd (ASX:MYX) share price and the Metcash Limited (ASX:MTS) share price are two of four ending the week deep in the red…

a woman

In afternoon trade the S&P/ASX 200 index is on course to end a disappointing week on a positive note. At the time of writing the benchmark index is up 0.6% to 6,711 points.

Four shares that have failed to follow the market higher today are listed below. Here's why they are ending the week in the red:

The Gentrack Group Ltd (ASX: GTK) share price has crashed 13% lower to $4.18 after it downgraded its FY 2019 guidance for a third time. Gentrack expects to post revenue of NZ$112 million, up 7.2% year on year. However, its earnings are expected to be down significantly this year. Management expects its EBITDA for FY 2019 to be marginally below its revised guidance range of between NZ$25 million and NZ$26 million. This implies a year on year decline of at least 19%.

The Mayne Pharma Group Ltd (ASX: MYX) share price has dropped 10.5% to 48.7 cents. The pharmaceutical company's shares have been sold off following the release of its annual general meeting presentation. At the event Mayne Pharma warned that conditions in the key generics market remain very tough. This has led to a 16% decline in group revenue for the first four months of FY 2020.

The Metcash Limited (ASX: MTS) share price has sunk 9.5% lower to $2.75. This afternoon Metcash revealed that it has been advised by 7-Eleven that it will not be renewing the current supply agreement following its conclusion in August 2020. Metcash advised that total Convenience annual sales to 7-Eleven are ~$800 million. These comprise predominantly lower margin tobacco sales.

The Regional Express Holdings Ltd (ASX: REX) share price has hit some turbulence and is down 8% to $1.14. Investors have been selling the regional airline's shares after it downgraded its profit guidance for FY 2020. It now expects a decline in profits of 20% to 30% this year, compared to previous guidance for a 15% to 20% reduction. Furthermore, as a result of its underperformance and the uncertain global economic outlook, it has decided against paying an interim dividend. It does plan to pay a final dividend, just as long as conditions do not deteriorate any further.

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