Why A2 Milk, Appen, Jumbo, & Link shares are sinking

These ASX shares aren’t having a good day…

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In late trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end its winning streak and record a disappointing decline. At the time of writing, the benchmark index is down 0.6% to 7,487.5 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price has sunk 12% to $6.02. This follows the release of a full year result that narrowly achieved its downgraded (four times) guidance range. The infant formula company reported a 30.3% decline in revenue to NZ$1.21 billion and a 77.6% fall in EBITDA to NZ$123 million. The company also revealed that it has decided against a capital return and warned that FY 2022 would be challenging.

Appen Ltd (ASX: APX)

The Appen share price has crashed 22% to $10.81 after the release of its half year results. Appen reported a 2% decline in revenue to US$196.6 million and a 14.3% fall in EBITDA to US$27.7 million. Although its EBITDA was a touch ahead of the US$27million analysts at Citi were expecting, the broker noted that its estimate was ~20% lower than consensus estimates. This means it fell well short of what the market was expecting. Appen also announced the acquisition of location data provider Quadrant.

Jumbo Interactive Ltd (ASX: JIN)

The Jumbo share price is down 10% to $16.40. This follows the release of the lottery ticket seller’s full year results. Jumbo reported total transaction value (TTV) growth of 37% to $487 million and revenue growth of 17% to $83.3 million. However, softer margins led to underlying net profit after tax growing only 7% to $28.3 million. Jumbo also announced the acquisition of Canada-based Stride Management.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price is down 12.5% to $4.50. Investors have been selling the financial technology company’s shares following the release of a disappointing full year result. Link reported a 6% year on year decline in revenue to $1.16 billion and an 18% decline in operating net profit after tax and amortisation to $113 million.

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Motley Fool contributor 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 has recommended Appen Ltd, Jumbo Interactive Limited, and Link Administration Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd and Jumbo Interactive Limited. The Motley Fool Australia has recommended A2 Milk and Link Administration Holdings Ltd. 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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