After a poor start, in afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a gain. At the time of writing, the benchmark index is up 0.3% to 7,242.7 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are sinking:
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Altium Limited (ASX: ALU)
The Altium share price is down 6% to $32.44. This morning the electronic design software provider reported a 28% increase in half year revenue to US$102 million and a 38% lift in net profit after tax to US$23 million. While this was strong, its guidance appears to have disappointed the market. Management now expects to hit the high end of its revenue guidance range, but only the low end of its margin guidance range. This implies a miss on earnings based on consensus forecasts.
PointsBet Holdings Ltd (ASX: PBH)
The PointsBet share price is down 11% to $4.00. Investors have been selling this sports betting company's shares following the release of a disappointing update form rival DraftKings. Its shares crashed 22% on the Nasdaq on Friday after revealing a loss of US$326 million for the fourth quarter. It also warned that it was likely to make a loss of US$1 billion in FY 2022. This is being driven largely by marketing activities.
Tyro Payments Ltd (ASX: TYR)
The Tyro share price has crashed 28% to $1.56. The catalyst for this was the release of the payments company's half year results. Although Tyro reported a 31% increase in transaction value to $15.8 billion, its EBITDA tumbled 67% to just $2.8 million. Tyro's margins were impacted by investments in growth initiatives, wage inflation, and the removal of JobKeeper.
Zip Co Ltd (ASX: Z1P)
The Zip share price has tumbled 7% to $2.38. This follows the release of an update from the buy now pay later (BNPL) provider ahead of its half year results later this week. While that update revealed strong top line growth, it was the bottom line which spooked investors. Due partly to Zip's net bad debts rising to 2.6% of transaction volumes, the company expects to post a cash EBTDA loss of $108.1 million for the half.
