These were the worst performing ASX 200 shares last week

NRW Holdings Limited (ASX:NWH) and Netwealth Group Ltd (ASX:NWL) shares were among the worst performers on the ASX 200 last week…

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A disappointing end to the week led to the S&P/ASX 200 Index (ASX: XJO) wiping out all its weekly gains and more. The benchmark index ultimately ended the week 0.2% lower at 6,793.8 points.

While a number of ASX 200 shares dropped with the market, some fell more than others. Here’s why these were the worst performers:

NRW Holdings Limited (ASX: NWH)

The NRW share price was the worst performer on the ASX 200 with a decline of 15%. Investors were selling the contractor’s shares following the release of its half year results. For the six months ended 31 December, the contractor reported a 44% increase in revenue to $1,168 million and a 28% lift in EBITDA to $132.8 million. However, on the bottom line the company posted a disappointing 17% decline in net profit to $29 million. This was driven largely by a significant increase in depreciation.

GWA Group Ltd (ASX: GWA)

The GWA share price wasn’t far behind with a decline of 14.9% last week. The catalyst for this was the release of a disappointing half year result by the leading provider of water solutions products and systems. For the half, the company reported a 4.4% decline in revenue to $197.2 million. Management advised that this reflects an overall decline in market conditions. Things were even worse on the bottom line, with normalised net profit after tax falling 17% to $20 million.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price was out of form and dropped 13.9% over the five days. This appears to have been driven by a broker note out of Morgan Stanley last week. After updating its financial models to reflect the merger with Saracen Mineral, the broker has reiterated its underweight rating and put a $12.95 price target on the company’s shares. Though, it is worth noting that the Northern Star share price has now dropped below this price target.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price was a poor performer and dropped 13.8% lower last week. Investors were selling the investment platform provider’s shares despite it delivering strong growth during the first half. For the six months ended 31 December, the company recorded a 30.1% increase in EBITDA to $40.5 million. This was driven by strong growth in Netwealth’s funds under administration over the last 12 months. Concerns over its second half margins may have been weighing on its shares.

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