These shares are having a tough time on Tuesday. But why?
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The S&P/ASX 200 Index (ASX: XJO) is having a poor session on Tuesday. In afternoon trade, the benchmark index is down 0.5% to 8,264.6 points.
Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:
Domino’s Pizza Enterprises Ltd (ASX: DMP)
The Domino’s Pizza share price is down 11% to $28.59. Investors have been selling the pizza chain operator’s shares following the release of its half year results. Domino’s reported a 2.9% decline in network sales to $2.08 billion and a 6.7% reduction in EBIT to $100.6 million. Despite this profit decline, the company maintained its dividend at 55.5 cents per share.
Johns Lyng Group Ltd (ASX: JLG)
The Johns Lyng share price is down 32% to $2.57. The catalyst for this has been the release of the insurance building and restoration services company’s half year results. Johns Lyng reported a 6.1% decline in revenue to $573.1 million and a 15.2% decline in normalised EBITDA to $54.2 million. Management blamed this on “a challenging operating environment with benign weather conditions across Australia resulting in a reduced volume of insurance claims and CAT-related work.” In light of this poor first half, the company has downgraded its FY 2025 guidance. It is guiding to revenue of $1.167 billion and EBITDA of $126.5 million. It was previously guiding to revenue of $1.228 billion and EBITDA of $132.5 million.
Polynovo Ltd (ASX: PNV)
The Polynovo share price is down 16% to $1.50. This medical device company’s shares have fallen heavily this week following the release of its half year results. Polynovo reported a 28.1% increase in sales to a record of $54.1 million and a 23.9% increase in net profit after tax to $3.3 million. However, causing some alarm bells to ring was its $12.5 million operating cash outflow for the half. In addition, no guidance was provided for the full year.
Praemium Ltd (ASX: PPS)
The Praemium share price is down 11% to 77.5 cents. This morning, this investment platform provider released its half year results and revealed a 32% increase in revenue to $52.3 million and a 45% jump in net profit after tax to $5.8 million. Though, it also recorded an operating cash outflow of $5.2 million for the half. In other news, the company revealed that its CFO has resigned and will be leaving at the end of next week.
Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, PolyNovo, and Praemium. The Motley Fool Australia has recommended Domino’s Pizza Enterprises, Johns Lyng Group, and PolyNovo. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.