Why IOOF, IGO, Janus Henderson, & Qantas shares are dropping lower

IOOF Holdings Limited (ASX:IFL) and Qantas Airways Limited (ASX:QAN) shares are two of four dropping notably lower on Thursday…

In late morning trade the S&P/ASX 200 Index (ASX: XJO) is charging higher and on course to end its losing streak. The benchmark index is currently up 0.7% to 6,048.5 points.

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

The IOOF Holdings Limited (ASX: IFL) share price has tumbled 5.5% lower to $4.97 following its fourth quarter update. During the quarter IOOF's funds under management, advice and administration (FUMA) grew to $202.3 billion. This represents a quarterly increase of $6.7 billion or 3.4%. While that was positive, the same could not be said for its earnings commentary. IOOF advised that it expects to report an underlying net profit after tax of approximately $128 million to $130 million in FY 2020. This will be a sharp decline from $198 million a year earlier.

The IGO Ltd (ASX: IGO) share price is down a further 3.5% to $4.63. The nickel producer's shares have come under significant pressure this week after its guidance for FY 2020 fell short of expectations. IGO expects its revenue to be $892.4 million and its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to come in at $459.6 million. The latter falls well short of Macquarie's estimate of $530 million.

The Janus Henderson Group PLC (ASX: JHG) share price has dropped 3.5% to $30.18. This follows the release of its second quarter update after the market close on Wednesday. That update revealed assets under management (AUM) of US$336.7 billion at the end of June. While this was up 14% compared to the prior quarter, it was driven entirely by favourable market movements. The fund manager reported net outflows of US$8.2 billion for the quarter.

The Qantas Airways Limited (ASX: QAN) share price is down 2% to $3.42. Investors appear to have been selling the airline operator's shares due to concerns over the domestic travel market after more borders were closed. On a more positive note, this morning the ACCC advised that Regional Express Holdings Ltd (ASX: REX) will be allowed to continue to coordinate flight schedules with Qantas and Virgin Australia on 10 regional routes. The competition watchdog has authorised this until the end of June 2021.

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