In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down slightly to 7,441.7 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 is down 12.5% to $5.99 following the release of an investor update. The embattled infant formula company revealed that it expects significantly lower margins compared to pre-COVID levels. It is also aiming to grow its sales to NZ$2 billion over the next ~5 years. This compares to FY 2020's pre-COVID sales of NZ$1.73 billion. In addition, management advised that while its FY 2022 outlook remains the same, its China label IMF sales are now expected to be significantly down in the first half compared to the prior corresponding period.
Codan Limited (ASX: CDA)
The Codan share price has crashed 19% to $10.90. This is despite the technology company announcing a multi-year A$37.6 million contract to supply Domo Tactical Communications software defined mesh radios to a publicly listed global technology corporation. This is part of a sensitive military program, which some investors may be uncomfortable with. Also failing to stop the decline was management stating at its AGM that it is confident it will deliver a record first half result.
Electro Optic Systems Hldg Ltd (ASX: EOS)
The Electro Optic Systems (EOS) share price is down 5% to $3.43. Investors have been selling the communications, defence, and space company's shares after it downgraded its earnings guidance for FY 2022. EOS now expects its underlying EBIT before SpaceLink costs to be between $4 million and $8 million. This is a reduction from its prior guidance of $18 million to $21 million.
Woolworths Group Ltd (ASX: WOW)
The Woolworths share price is down 3.5% to $39.03. This morning the retail giant released its first quarter update ahead of its annual general meeting. For the three months ended 30 September, Woolworths delivered a 7.8% increase in group sales during the first quarter. However, it warned that Australian Food sales have slowed in New South Wales since restrictions eased.
