Guess which ASX 200 share just crashed 22% on its results announcement

It's been a crummy day for Ingenia Communities after the company downgraded its full-year guidance.

| More on:
Sad investor watching the financial stock market crash on his laptop computer.

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

Key points

  • Ingenia Communities is the worst-performing ASX 200 share today, down almost 22% at its intraday low 
  • The company released its 1H FY23 results today, which included significantly downgraded guidance for the full year 
  • Ingenia reported a 24% increase in EBIT but downgraded its EBIT growth guidance from 30% to between 0% and 10%

Ingenia Communities Group (ASX: INA) is the worst-performing ASX 200 share on the market today.

Ingenia shares opened at $3.72, down 19.5%, and quickly descended to an intraday low of $3.61. This represented a 21.85% drop. The stock has since recovered to $3.98, down 13.85% for the day.

This follows the release of the retirement and holiday communities developer's half-year FY23 results.

While the company reported a 24% increase in earnings before interest and taxes (EBIT), it downgraded its full-year EBIT growth guidance significantly from 30% to between 0% and 10%.

ASX 200 share in trading halt before results release

The ASX property share went into a trading halt at the company's request before the market open yesterday. That froze the ASX 200 share at Friday's closing price of $4.62.

Ingenia asked for the trading halt "in order to review recently updated home settlement forecasts and confirm its impact on earnings guidance, previously provided to the market".

The shares recommenced trading and crashed shortly after the results were released at 11.30am today.

Meantime, S&P/ASX 200 (ASX: XJO) shares are down a collective 0.2% as the market close nears.

What did the company report?

In its statement, the company said it had "growth levers in place" but production and settlement delays would impact its FY23 result, resulting in the downgrade to guidance.

Here are the highlights for the six months ending 31 December 2022:

  • Revenue of $173.6 million, up 32% on the prior corresponding period (pcp) of 1H FY22
  • EBIT of $42 million, up 24% pcp
  • Underlying earnings per share (EPS) of 8.5 cents, up 5% pcp
  • Statutory profit of $33.7 million, down 16% pcp
  • 5.2 cents per share distribution (unfranked) to be paid on 23 March

What did management say?

Ingenia CEO, Simon Owen said continuing construction delays and the falling residential market were key challenges for 2H FY23.

Owen commented on the results and outlook, saying:

During the first half, revenue and EBIT increases on the prior year were delivered as we benefitted from
an expanded asset base as well as growth in rents across the residential portfolios and strong performance from the holidays business.

We commenced our asset recycling program as we focussed on improving portfolio quality and internally funding growth.

However, extended construction timeframes and the subsequent impact on home settlements moderated first half earnings.

What's next for this ASX 200 share?

Owen said Ingenia's residential communities and holidays businesses "are performing well and
experiencing ongoing demand".

However, short-term challenges like ongoing labour shortages and construction delays, as well as rising inflation and interest rates, would lead to longer lead times with settlements.

Owen pointed to recent data showing days on market in regional areas had increased significantly from last year.

He said:

Whilst we are taking a prudent approach given the uncertainty, as we move into FY24, greater project
diversity and progress on our new projects will contribute to increased settlement volumes as we scale the development business.

Ingenia share price snapshot

The ASX 200 share is down 11.4% in the year to date and down 28.2% over the past 12 months.

Ingenia is underperforming its peers, with the S&P/ASX 200 A-REIT Index (ASX: XPJ) up 6.7% in the year to date and down 13% over the past 12 months.

This compares to a 6.5% year-to-date bump in the ASX 200 and a 1.4% rise over the past year.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Earnings Results

Doctor doing a telemedicine using laptop at a medical clinic
Earnings Results

Polynovo share price surges after 57% revenue gain in FY24

Global sales continue to grow for Polynovo.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Earnings Results

Paladin Energy share price in focus on quarterly production data

The uranium producer had a reasonably constructive quarter.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Earnings Results

ASX 200 stock jumps 10% on strong FY24 results

How did this KFC restaurant operator perform in FY 2024?

Read more »

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.
Consumer Staples & Discretionary Shares

Guess which ASX 200 stock just slashed its final dividend by 23%

This retailer had a tough time during the 12 months. Here's how it performed.

Read more »

Man jumps for joy in front of a background of a rising stocks graphic.
Earnings Results

Catapult shines: 20% sales growth propels ASX tech stock to new 52-week high

A strong annual result from this tech player has caught investor attention.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Earnings Results

Xero share price leaps 8% on staggering earnings upheaval

A major turnaround in profitability is sending investors into a frenzy over Xero shares today.

Read more »

a construction worker sits pensively at his desk with his arm propping up his chin as he looks at his laptop computer while wearing a hard hat and visibility vest in a bunker style construction shed.
Materials Shares

Which ASX 200 stock just plunged 12% despite record full-year earnings?

It looks like an impressive report card but UBS doesn't like the FY25 guidance.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Earnings Results

ASX 200 tech stock lifts off on another record-setting half-year profit

Investors are bidding up the ASX 200 tech company following its half-year results.

Read more »