With the market in selloff mode on Tuesday, a good number of shares sank deep into the red.
Some shares fell so hard they dropped to 52-week lows or worse. Three that achieved this unwanted milestone are listed below. Here's why they are down in the dumps:
The G8 Education Ltd (ASX: GEM) share price hit a 52-week low of $1.87 on Tuesday. Investors have been selling the childcare centre operator's shares since the release of a trading update at its investor day event last month. That update revealed that a greater than expected increase in supply has put pressure on its like for like occupancy growth. As a result of this and higher than planned wages, underlying EBIT is expected in the range of $131 million to $134 million. This compares to its previous guidance of $140 million to $145 million.
The Gentrack Group Ltd (ASX: GTK) share price continued its slide and hit a two-year low of $3.46 yesterday. The essential software provider's shares have fallen heavily this year following a series of disappointing downgrades to its earnings guidance. Last month Gentrack downgraded its FY 2019 EBITDA guidance for a third time. Although it expects its revenue to rise 7.2% to NZ$112 million, EBITDA is expected to be below NZ$25 million. This implies a year on year decline of at least 22%. Unfortunately, things aren't likely to improve in FY 2020, with management forecasting flat earnings.
The Prospa Group Ltd (ASX: PGL) share price sank to an all-time low of $1.92 on Tuesday. Investors were heading to the exits in their droves last month after the online lender downgraded its full year guidance. Although Prospa expects calendar year 2019 originations to be above its prospectus forecast at $574.5 million, revenue and EBITDA are expected to fall well short of its forecasts. This has been driven largely by its premiumisation strategy exceeding its forecast. This has led to increased demand for its solutions from premium credit quality customers who pay lower interest rates over longer terms.
