Why A2 Milk, Adairs, Elders, and Iress shares are sinking today

These ASX shares are falling heavily on Monday.

| More on:
A man looks down with fright as he falls towards the ground.

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is under pressure again. At the time of writing, the benchmark index is down 0.15% to 7,137.8 points.

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

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down 12% to $4.35. This follows the release of the infant formula company's FY 2023 results. Although A2 Milk delivered a strong result, its guidance for FY 2024 appears to have disappointed the market. In addition, management highlights that the Chinese infant formula market is becoming very challenging due to declining birth rates.

Adairs Ltd (ASX: ADH)

The Adairs share price is down 14% to $1.44. Investors have been selling this homewares retailer's shares after it released its FY 2023 results. Adairs posted a 10.1% increase in sales to $621.3 million but a 16.4% decline in EBIT to $63.9 million. Management also revealed that FY 2024 has started poorly, with sales down 8.9% during the first seven weeks.

Elders Ltd (ASX: ELD)

The Elders share price is down 8% to $6.55. This morning, this agribusiness company downgraded its EBIT guidance for FY 2023. Elders now expects EBIT between $165 million and $175 million for the 12 months. This is down from its previous guidance range of between $180 million and $200 million. Rural Products sales have been lower than forecast.

Iress Ltd (ASX: IRE)

The Iress share price is down a massive 30% to $7.04. Investors have been hitting the sell button after the fintech company posted a half-year net loss after tax of $139.8 million. While was due largely to significant items, things weren't much better on an underlying basis. The company's underlying net profit after tax was down 31% to $24.4 million. Iress has also suspended its dividend and downgraded its FY 2023 earnings guidance.

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 positions in and has recommended Adairs. The Motley Fool Australia has positions in and has recommended Adairs. The Motley Fool Australia has recommended A2 Milk and Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Fallers

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why Ampol, Calix, Collins Foods, and Propel shares are tumbling today

These ASX shares are ending the week in the red. But why?

Read more »

A woman with short brown hair and wearing a yellow top looks at the camera with a puzzled and shocked look on her face as the Westpac share price goes down for no reason today
Share Fallers

Why Australian Finance Group, Chalice, DroneShield, and ResMed are sinking today

These ASX shares are having a tough time on Thursday. But why?

Read more »

A young man goes over his finances and investment portfolio at home.
Growth Shares

1 ASX growth stock down 30% to buy right now

The market has reacted badly to this ASX 200 company's half-year result. This could be your chance to get in.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Flight Centre, Fortescue, Kelsian, and Neuren shares are dropping today

These ASX shares are being hit hard on Wednesday. But why?

Read more »

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.
Share Fallers

Why Brainchip, DGL, Weebit Nano, and Zip shares are dropping today

These ASX shares are being hit hard on Tuesday. But why?

Read more »

A man and a woman sit in front of a laptop looking fascinated and captivated.
Share Fallers

This ASX All Ords stock's founders just sold 40 million shares, and the stock dove 14%

This All Ords share's founders just cashed out $30 million.

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Nanosonics, NIB, Santos, and TPG shares are falling today

These ASX shares are starting the week in the red.

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why Accent, Austal, Newmont, and Sandfire shares are plunging today

These ASX shares are ending the week in the red. But why?

Read more »