Why Challenger, Melbana Energy, Seek, and Temple & Webster shares are sinking

These ASX shares are not having a great time on Tuesday. Why are they sinking?

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decent gain. The benchmark index is currently up 0.55% to 7,316.7 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

a business man in a suit holds his hand over his eyes as he bows his head in a defeated post suggesting regret and remorse.

Image source: Getty Images

Challenger Ltd (ASX: CGF)

The Challenger share price is down 5% to $6.60. Investors have been hitting the sell button today after the annuities company released its FY 2023 results. Challenger reported record annuity sales and a 10% increase in normalised net profit before tax to $521 million. While this was strong, its guidance for FY 2024 appears to have fallen a touch short of expectations.

Melbana Energy Ltd (ASX: MAY)

The Melbana share price is down 31% to 7.2 cents. This has been driven by the release of an update on its appraisal well Alameda-2 onshore in Cuba. While the company found oil, it was the heavy variety. This isn't used for gasoline, diesel or aviation fuels. Melbana also looks like it could have a battle getting it up from under the sea. It advised: "Oil did not flow to surface as the weight of the fluid column naturally killed the well."

Seek Ltd (ASX: SEK)

The Seek share price is down 5.5% to $24.35. This morning, Seek released its FY 2023 results and reported a 10% increase in revenue to $1.225 billion but a 16% decline in net profit after tax to $203 million. Management also revealed that it expects a rather flat result in FY 2024.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is down over 4% to $6.59. This follows the release of the online furniture retailer's FY 2023 results. It reported a 7.2% decline in revenue to $396 million and a 31% drop in net profit after tax to $8.3 million.

Motley Fool contributor James Mickleboro has positions in Seek. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Challenger, Seek, and Temple & Webster Group. 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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