Results season continued last week with decent results pushing the ASX higher. Rate cut expectations saw the S&P/ASX 200 (INDEXASX: XJO) hit a record high on Thursday before closing the week at 7,139 points, up 8.8 points or 0.1%. Coronavirus concerns continued, however, and investors were unforgiving when results failed to impress.
We take a look at the top 5 ASX share price fallers last week.
WiseTech Global Limited (ASX: WTC)
WiseTech Global shares fell 33.6% last week, closing the week at $19.28, down from $29.05. WiseTech released its half year results last week, which resulted in a sell down of shares after revenues missed investor expectations.
Revenue grew 31% over 1HFY19 to $205.9 million, but was still below analyst expectations of closer to $220 million in revenues. Operating expenses increased by 33% from the prior corresponding period, reaching $106.9 million. WiseTech reported earnings before interest tax depreciation and amortisation (EBITDA) of $62.5 million, up 29%. Basic earnings per share were 18.8 cents up 147% from 1HFY19, and roughly in line with estimates.
WiseTech has forecast FY20 revenues of $420 million to $450 million, which would represent growth of 21–29% on FY19 revenues. Prior to the release of its latest results, analysts were forecasting earnings of more than $465 million in FY20. It is clear, then, that the market expects WiseTech’s rate of growth will slow. WiseTech forecasts FY20 EBITDA of $114 million to $132 million, up 5–22% on FY19.
EML Payments Ltd (ASX: EML)
EML Payments shares fell by 18.2% last week to close the week at $4.63, down from $5.66. Today has seen the beaten down shares fall another whopping 9.29% in morning trade already.
EML Payments delivered a solid half year result last week hitting the top end of its guidance, but saw its shares slump regardless. EML Payments shares are up more than 300% over the last 12 months so high expectations were already factored into the share price, leading to a comedown for those hoping EML Payments would exceed guidance.
EML Payments reported first half revenue of $59.2 million, a 25% increase over 1HFY19 revenues of $47.2 million. EBITDA was up 42% to $19.7 million, having grown more than 30% for each of the last three years. Net profit after tax and amortisation (NPATA) increased 70% to $16 million. No dividend was declared.
EML has forecast EBITDA of $39.5 million to $42.5 million in FY20, excluding acquisition costs, which would represent growth of 36–43%. Revenue guidance has been tightened from $116–$132 million to $120–$129 million. NPATA guidance has been updated from $26.2–$29.4 million to $27.5–$30.5 million.
Altium Limited (ASX: ALU)
Altium shares dropped 17.7% last week to close at $34.41, down from $41.82, and they have dropped another 3.34% in early trade today.
The electronic PCB software business reported that it only expected to reach the lower end of its FY20 guidance due to uncertainty around the impact of the coronavirus in China. Full year revenue guidance is US$205 million to US$215 million.
In its half year results, Altium reported revenue growth of 19% with revenue of US$92.8 million, thanks to strong performance in all key business units and regions (except for Octopart). Profit before tax grew 23% to US$31.8 million, however profit after tax fell by 2% to US$23 million.
Altium moved to the full effective tax rate of 27% during the half, which resulted in a 2% decline in earnings per share, falling to 17.65 cents from 18 cents in 1HFY19. Flat earnings per share are expected to continue for the rest of the financial year. Nonetheless, an interim dividend of 20 cents per share was declared, up 25%.
Altium’s underlying business remains strong with a 16% increase in the subscription base during the half, subscribers numbering 46,693 at 31 December, well on the way to reaching the goal of 100,000 subscribers by 2025. CEO Aram Mirkazemi is confident Altium can reach its target of 50,000 subscribers by full year.
New Hope Corporation Limited (ASX: NHC)
New Hope Corporation shares fell by 16.1% last week to close at $1.595, with one of its largest shareholders exiting after 30 years. According to the Australian Financial Review, Mitsubishi sold its 11.2% stake on Thursday night at $1.69 a share (New Hope was trading at $1.86 at close of market on Thursday).
New Hope shares have been under pressure since reaching a peak of over $4.40 in March last year as demand for thermal coal has slumped, with demand instead turning towards gas and renewable energy fired electricity generation.
The coal miner also released its quarterly activities report last week which revealed total coal sold increased 44% in the 6 months ending 31 January 2020. Coal prices, however, are well down from their 2018 highs.
The company also announced that its opponents in the Colton Project case have sought leave to appeal to the High Court. Previously the New South Wales Court of Appeal had found New Hope had not guaranteed the debts of Northern Energy Corporation Limited (in liquidation) and Colton Coal Pty Ltd (in liquidation).
New Hope shares are down another 3.01% to start the week, going for $1.55 at the time of writing.
Whitehaven Coal Ltd (ASX: WHC)
Whitehaven Coal shares dropped 10.4% last week on the back of disappointing half year results, closing the week at $2.24. They have continued their downward slide in morning trade, dropping another 4.24% at the time of writing. Shares in Whitehaven Coal are now near 3 year lows as lower prices for thermal coal crimp profits.
Whitehaven reported a slump in profits of 91%, with net profit after tax (NPAT) falling to $27.4 million from $305.8 million in 1HFY19. Revenue fell 30% to $885.1 million, reflecting a lower average achieved price of $108 per tonne down from $155 per tonne in 1HFY19.
Labour shortages and dust events at Whitehaven’s largest mine, combined with softer prices, resulted in a 68% drop in EBITDA which fell to $117.3 million from $550.8 million.
An unfranked dividend of 1.5 cents per share was declared, down from 20 cents in the prior corresponding period, which CEO Paul Flynn said reflected confidence in the fundamentals of the business and the prospects of a stronger second half.
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Motley Fool contributor Kate O'Brien has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Emerchants Limited. The Motley Fool Australia owns shares of Altium and WiseTech Global. 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.