Why Appen, McPherson's, Northern Star, & PWR shares are dropping lower

Appen Ltd (ASX:APX) and Northern Star Resources Ltd (ASX:NST) shares are two of four dropping lower on Thursday…

In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to end its winning streak. At the time of writing the benchmark index is down 0.4% to 6,700.7 points.

Four shares that have fallen more than most today are listed below. Here's why they are dropping lower:

Appen Ltd (ASX: APX)

The Appen share price has sunk 12% lower to $26.27 following the release of an update. The artificial intelligence services company revealed that COVID-19 has been weighing on its performance and is expected to lead to it falling well short of guidance in FY 2020. It is now forecasting underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $106 million to $109 million (or $108 million to $111 million when applying the originally assumed exchange rate). This is down from its previous guidance of $125 million to $130 million.

McPherson's Ltd (ASX: MCP)

The McPherson's share price has dropped 8% to $1.15. Investors have been selling the health, wellness, and beauty products company's shares after it announced the departure of its CEO after a difficult year. Laurie McAllister has resigned with immediate effect just days after the company completed the acquisition of the Global Therapeutics business from Blackmores Limited (ASX: BKL).

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down 5.5% to $12.30. This follows a sizeable pullback in the spot gold price overnight after risk sentiment improved and demand for safe havens softened. It isn't just Northern Star that is sinking lower. The S&P/ASX All Ordinaries Gold index is down 3.6% at the time of writing.

PWR Holdings Ltd (ASX: PWH)

The PWR share price has fallen 3.5% to $4.98 despite the release of a positive update. PWR revealed that trading had been strong recently. As a result, for the first half of FY 2021, it expects EBITDA in the range of $10 million to $11.5 million. This represents an increase of more than 30% on the prior corresponding period. However, with its shares recently hitting a record high, some investors may have been expecting even stronger growth.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Appen Ltd. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool Australia has recommended PWR HLDING FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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