The S&P/ASX 200 Index (ASX: XJO) is on form again on Thursday. In afternoon trade, the benchmark index is up 0.25% to 8,028.8 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:
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Collins Foods Ltd (ASX: CKF)
The Collins Foods share price is down 11% to $7.84. Investors have been hitting the sell button in response to the release of a trading update from the KFC restaurant operator. Management revealed that its sales were up 1.1% during the first 16 weeks of the FY 2025 financial year. However, Collins Foods has been impacted by inflationary pressures. As a result, management warned that the "profit gains on higher sales were more than offset by the impact of persistent inflation on cost of sales, labour and energy."
G8 Education Ltd (ASX: GEM)
The G8 Education share price is down 10% to $1.26. This has been driven by the release of the childcare operator's half year results. G8 Education posted a 5.6% increase in revenue to $481.7 million and a 21.8% lift in net profit after tax to $23.9 million. While this is positive, management warned that second half "sector conditions are anticipated to be more challenging."
Insignia Financial Ltd (ASX: IFL)
The Insignia Financial share price is down almost 14% to $2.53. This morning, this financial services company released its full year results and reported a 0.9% increase in revenue to $1.39 billion and a statutory net loss of $185 million. In light of this poor form, the company suspended its dividend. CEO Scott Hartley said: "We acknowledge the pause in dividend payments will be disappointing for some of our shareholders however, at this time, we must prioritise strengthening our balance sheet."
Megaport Ltd (ASX: MP1)
The Megaport share price is down 21% to $9.29. This has been driven by the release of the network as a service provider's full year results. Megaport revealed a 28% increase in revenue to $195.3 million and a 182% jump in EBITDA to $57.1 million. While this was largely in line with expectations, its guidance for FY 2025 disappointed. Goldman Sachs said: "Megaport provided FY25 guidance for: (1) Revenue growth of +10% to +14% to A$214-222mn (-7% at midpoint vs. GSe A$234mn; -6% vs VAe A$233mn), with MP1 focus on accelerating ARR through the next 3 years; (2) EBITDA growth of +0% to +14% to A$57-65mn (-22% at midpoint vs. GSe A$78mn; -18% vs VAe A$74mn) with Jun-24 EBITDA being $4.5mn, implying $54mn annualised."
