3 ASX All Ords stocks getting hammered on disappointing earnings

Shareholders in these three ASX-listed companies are running for the exit following their full-year results.

Mitchell Lawler

Mitchell stumbled upon the concept of investing when in high school, devotedly urging his parents to put some money into a handful of technology companies with increasingly popular products among his demographic – many of which have gone on to great success. It wouldn’t be until 2017, some five years later, that Mitchell became an investor of his own money. Having studied and worked as a mechanical engineer in the building services industry, Mitchell takes a methodical and analytical approach to evaluating businesses. Rather than relying purely on numbers, Mitchell drills beyond a company’s metaphorical mantle to unearth obscure patterns or competitive advantages that would go otherwise unnoticed. His expertise resides within areas such as software, consumer goods, and building services equipment. However, his quest to find quality companies that set the industry standard and flex some degree of an impenetrable position has no limits – small cap to mega cap, cosmetics to healthcare – if it’s an exceptional business it’s on his radar.

Published August 17, 2023 1:13 pm AEST

Most ASX All Ords stocks are in the red on Thursday after another negative night across the US share market. Around lunchtime, the S&P/ASX All Ordinaries Index (ASX: XAO) is tracking 0.88% lower at 7,346.5 points.

Three All Ords members, in particular, are having a rough trot today upon sharing their latest financial figures with investors.

Here's a quick look into what could be instigating the pessimism.

Why the red reaction to these ASX All Ords stocks?

Buoyant property prices weren't enough to help Domain Holdings Australia Ltd (ASX: DHG) impress in its full-year results. Instead, the digital property platform provider recorded a steep 32.4% fall in earnings per share (EPS) in FY23.

The company reported roughly flat revenue compared to the prior period, sitting at $345.7 million. Weakness was apparent in Domain's residential segment as new for-sale property listings tumbled 13.8%.

In turn, the company's largest revenue generator experienced a 6.8% decline in reported revenue for the financial year.

The ASX All Ords stock also reported net profits below consensus estimates of $39.8 million. As a result of weaker listings, significant item losses, and discontinued operations losses — Domain's net earnings shrank to $26.1 million.

At the time of writing, shares in Domain are down 7.2% to $3.79. Accounting for today's fall, the share price is now slightly below where it was a year ago.

Next is television and radio broadcaster Southern Cross Media Group Ltd (ASX: SXL). In FY23, full-year revenue for this media company slipped 3.7% to $505.6 million. Stellar growth in the digital audio (LiSTNR) category was offset by a 14.5% fall in television revenue.

The real pain struck the Ten Network owner when it came to its net profits after tax (NPAT). Lower revenue and higher expenses culminated in a 20.1% slump in after-tax profits in FY23.

Heading into the afternoon, shares in Southern Cross Media are down 8.3% to 83 cents apiece. The weakened share price means this ASX All Ords stock is now 27.8% below what it traded for a year ago.

Lastly, NRW Holdings Limited (ASX: NWH) rounds out our three ASX shares feeling the heat on Thursday. The diversified contract services company is experiencing a sizeable sell-off despite reporting a record full-year result in many regards.

According to the company's release, revenue reached a record $2.7 billion, rising 11.4% from the prior year. Likewise, EBITDA came in at a record $288.8 million, increasing by 10.2%. Notably, all three segments — civil; mining; and minerals, energy, and technologies — delivered growth in the latest financial year.

However, statutory earnings shrunk from $90.2 million in FY22 to $85.6 million.

At the time of writing, shares in this ASX All Ords stock were down 6.6% to $2.56. Despite the negative move, the NRW Holdings share price is still 21.8% higher over the past year.

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