The S&P/ASX 200 Index (ASX: XJO) is edging higher on Friday. At the time of writing, the benchmark index is up slightly to 8,328.5 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:
Guzman Y Gomez Ltd (ASX: GYG)
The Guzman Y Gomez share price is down 10% to $40.55. This follows the release of the Mexican fast-food chain's half year results. Although the company delivered strong sales and profit growth during the half, this all came from the Australia segment. The US business posted a sizeable drop in sales and an operating loss for the six months. Given how much future growth is factored into its share price and how vital the US market is for this growth, investors appear concerned that its expansion across the Pacific could be a flop and have been hitting the sell button.
Jumbo Interactive Ltd (ASX: JIN)
The Jumbo Interactive share price is down almost 11% to $11.70. This morning, this online lottery ticket seller released its half year results and reported a 10.4% decline in revenue to $66.1 million and a 10.8% reduction in net profit to $18.6 million. This forced the company's board to cut its interim dividend by 11.1% to 24 cents per share. Jumbo's CEO and Founder, Mike Veverka, said: "The large jackpot environment in the first six months of FY25 was relatively subdued prompting changes to marketing techniques and cost base management."
PWR Holdings Ltd (ASX: PWH)
The PWR Holdings share price is down 15% to $7.10. Investors have been selling this automotive cooling products company's shares following the release of its half year results. PWR reported a 2.1% decline in revenue to $62.9 million and a disappointing 58.2% reduction in net profit after tax to $4.1 million. The company said: "The half saw several headwinds. These included the completion of major Automotive OEM programs in FY24, three niche OEM EV programs not proceeding in FY25, even though PWR received purchase orders in FY24 for the FY25 work program, and a global decline in aftermarket revenue due to broader economic pressures."
REA Group Ltd (ASX: REA)
The REA Group share price is down 10% to $239.83. This appears to have been driven by news that its property listings rival Domain Holdings Australia Ltd (ASX: DHG) has received a $2.7 billion takeover offer from CoStar Group, Inc. (NASDAQ: CSGP). Investors may believe that the US$32 billion US based listings company could fund an aggressive growth strategy for Domain that threatens REA Group's domination of the local market. However, no agreement has been reached at this stage and the Domain board is currently assessing CoStar's proposal.
