Why A2 Milk, Mesoblast, Mineral Resources, and Synlait shares are sinking

These ASX shares are likely to wish that the market had stayed closed for another day.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. The benchmark index is currently down 0.1% to 7,314.2 points.

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

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.

Image source: Getty Images

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down 4% to $5.49. This morning, A2 Milk revealed that it has lowered its total forecast production volume needs for English label consumer-packaged infant milk formula by ~1,650 metric tonnes for the period March through to June. This is due to significant daigou weakness, inventory build-up, and distribution model adjustments.

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is down almost 12% to 87.5 cents. This follows news that Mesoblast has undertaken a private placement to its existing major US, UK, and Australian shareholders. The biotech company raised approximately US$40 million at a discount of 85 cents per share.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is down 9% to $72.91. Although the mining and mining services company just reported a record quarter for its lithium operations, its mining services business had a very tough time. This has seen the company downgrade its guidance accordingly. Management also warned that its lithium operations are likely to achieve only the low-end of their guidance range.

Synlait Milk Ltd (ASX: SM1)

The Synlait Milk share price has crashed 20% to $1.50. This morning, this dairy processor downgraded its full-year earnings guidance by NZ$20 million less than a month after releasing it to the market. It now expects earnings in the range of a NZ$5 million loss to a NZ$5 million profit. This was driven largely by A2 Milk's reduced demand for infant formula.

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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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