ASX 200 up 0.85%: A2 Milk & Zip shares hammered, Afterpay to raise $1.25bn

A2 Milk Company Ltd (ASX:A2M) and Zip Co Ltd (ASX:Z1P) shares are making a big splash on the ASX 200 on Thursday…
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At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) is back on form and charging higher. The benchmark index is currently up 0.85% to 6,836.4 points.

Here’s what is happening on the market today:

A2 Milk share price sinks

The A2 Milk Company Ltd (ASX: A2M) share price is sinking heavily today following the release of its half year results. Although the infant formula and fresh milk company delivered a first half result in line with expectations, it doesn’t expect its second half performance to be strong enough to achieve its full year guidance. As a result, it has downgraded its already downgraded full year guidance. It now expects revenue of ~NZ$1.4 billion and an EBITDA margin of 24% to 26%. Its previously downgraded guidance was for revenue of NZ$1.4 billion to NZ$1.55 billion with an EBITDA margin of 26% to 29%.

Afterpay half year results

The Afterpay Ltd (ASX: APT) share price isn’t going anywhere today after requesting a trading halt. This is so the payments company can undertake a $1.25 billion notes offering to fund the buyback of equity in its Afterpay US business. In respect to its results, Afterpay reported a 106% increase in underlying sales to $9.8 billion and a 108% jump in total income to $374.2 million. However, the company didn’t post a maiden profit as some had expected. Instead, it reported a loss after tax of $79.2 million.

Zip share price hammered

The Zip Co Ltd (ASX: Z1P) share price has been hammered on Thursday following the release of its half year results. For the six months ended 31 December, Zip reported a 141% increase in total transaction volume (TTV) to $2.32 billion. This underpinned a 130% jump in half year revenue to $160 million. Investors appear to have been expecting a stronger result.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Nanosonics Ltd (ASX: NAN) share price with an 8% gain. This morning analysts at Morgans upgraded its shares to an add rating with a $6.69 price target. The worst performer has been the a2 Milk share price with a 14% decline following its half year update.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Nanosonics Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post ASX 200 up 0.85%: A2 Milk & Zip shares hammered, Afterpay to raise $1.25bn appeared first on The Motley Fool Australia.

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