These were the worst performing ASX 200 shares last week

A2 Milk Company Ltd (ASX:A2M) and Xero Limited (ASX:XRO) shares were among the worst performers on the ASX 200 last week…

Red wall with large white exclamation mark leaning against it

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) was out of form last week. Concerns over rising inflation in the United States spooked investors and led to the index dropping 66.6 points or 0.9% to end at 7,014.2 points.

While a good number of shares tumbled lower with the market, some fell more than most. Here's why these were the worst performing ASX 200 shares last week:

Perenti Global Ltd (ASX: PRN)

The Perenti Global share price was the worst performer on the ASX 200 last week with a 28.6% decline. Investors were selling the mining services company's shares following the release of an operational update. Perenti revealed that it will no longer be delivering on its guidance for second half revenue and margins in line with what it reported in the first half. Instead, due largely to COVID-19 headwinds and Australian labour market shortages, it is expecting softer earnings in the second half. It also warned that these headwinds will persist for the next 12 to 18 months.

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price was well and truly out of form and sank 21.2% lower last week. The catalyst for this was the infant formula company downgrading its FY 2021 guidance for the fourth time. The company now expects revenue of NZ$1.2 billion to NZ$1.25 billion with EBITDA of NZ$132 million to NZ$150 million. This will mean a year on year reduction in EBITDA of 73% to 76% year on year. Sustained weakness in the daigou channel and a massive NZ$103 million to NZ$113 million inventory provision were behind the underperformance.

Xero Limited (ASX: XRO)

The Xero share price wasn't far behind with a disappointing 15.9% decline. The cloud-based business and accounting platform provider's shares were sold off following the release of its full year results. Although Xero delivered strong growth on both the top and bottom lines, it was still short of the market's expectations. This was particularly the case for its EBITDA, which was 16% below the market consensus estimate. In addition to this, higher than expected operating expense guidance for FY 2022 also weighed on sentiment.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price was a poor performer and dropped 13% over the five days. This appears to have been driven largely by weakness in the tech sector following a strong inflation reading in the United States. It wasn't just PointsBet that was sinking. The S&P/ASX All Technology Index (ASX: XTX) tumbled 5.7% lower over the five days.

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 and recommends Pointsbet Holdings Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why 29Metals, Brainchip, Platinum, and Premier Investments shares are falling today

These ASX shares are having a tough time on hump day.

Read more »

Man with his head in his head because of falling share price.
Share Fallers

Why 29Metals, Atlas Arteria, IDP Education, and Mineral Resources shares are falling

These ASX shares are having a tough time on Tuesday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why ALS, EOS, NRW, and Patriot Battery Metals are dropping today

These ASX shares are starting the week in the red.

Read more »

A man looking at his laptop and thinking.
Technology Shares

Why are these ASX tech shares getting smashed today?

Owners of these two stocks are missing out today.

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why AGL, Brickworks, IGO, and New Hope shares are dropping today

These ASX shares are having a poor session. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Amcor, Arafura, Brainchip, and South32 shares are tumbling today

These ASX shares are having a tough time on hump day. But why?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Aussie Broadband, Liontown, Metals Acquisition, and Seek shares are falling

These ASX shares are having a poor session. But why?

Read more »