Why ARQ Group, Blackmores, James Hardie, & Orora are tumbling lower

The Blackmores Limited (ASX:BKL) share price and the James Hardie Industries plc (ASX:JHX) share price are two of four tumbling lower on Wednesday…

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The S&P/ASX 200 index is on form again on Wednesday and is pushing notably higher. The benchmark index is up 0.5% to 7,088.2 points in afternoon trade.

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

The ARQ Group Ltd (ASX: ARQ) share price has continued its slide and is down a further 9.5% to 28.5 cents. Investors have been selling the digital solutions partner's shares after it announced the signing of a binding agreement to sell its Enterprise Services Division for $35 million. The agreement is with an entity owned by a consortium comprising Quadrant Private Equity and certain members of its management team. This includes its CEO Tristan Sternson, who has now stepped down and will be replaced by Brett Fenton.

The Blackmores Limited (ASX: BKL) share price has crashed 16% lower to $75.20. The health supplements company's shares have been sold off after it downgraded its guidance and suspended its dividend. Due to higher costs and tough trading conditions, Blackmores expects to report an underlying NPAT of $18 million in the first half. This will be a 47% decline on the prior corresponding period and falls short of its ~$21 million guidance. Things are expected to worsen in the second half, with management forecasting a full year NPAT of just $17 million to $21 million.

The James Hardie Industries plc (ASX: JHX) share price is down 3.5% to $31.02 following the release of its third quarter update. The building products company reported a 17% increase in adjusted net operating profit for both the quarter and financial year to date. Whilst this is solid, its guidance for the full year appears to have disappointed the market. Management expects full year adjusted net operating profit to be between US$350 million and US$370 million. This compares to consensus estimates of US$356 million and US$380 million.

The Orora Ltd (ASX: ORA) share price is down almost 6% to $2.96 after its half year results underwhelmed investors. The packaging company reported a 13.3% increase in revenue to $1,835.2 million, but a 4.1% decline in EBIT to $133.1 million. Its North American business was largely to blame for the decline in earnings.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. 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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