Challenger Ltd (ASX:CGF) and Nuix Ltd (ASX:NXL) shares were among the worst performers on the ASX 200 in April…
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The S&P/ASX 200 Index (ASX: XJO) has just completed its best month of the year. Over the 30 days, the benchmark index rose an impressive 3.5% to finish it at 7,025.8 points.
Unfortunately, not all shares were able to follow its lead. Here’s why these were the worst performers on the ASX 200 in April:
Whitehaven Coal Ltd (ASX: WHC)
The Whitehaven Coal share price was the worst performer on the ASX 200 in April with a 27.5% decline. The coal miner’s shares came under significant pressure following the release of a production and guidance update. That update reveals that the company’s production has been impacted by poor weather conditions and geological challenges. As a result, management has downgraded its FY 2021 managed ROM production guidance at the Narrabri mine. Rather than its previous guidance of 5.3Mt to 5.5Mt, the company now expects production of 4.5Mt to 4.9Mt.
Beach Energy Ltd (ASX: BPT)
The Beach Energy share price wasn’t far behind with a disappointing 25.7% decline in April. Almost all of this decline came on the final day of the month following the release of its quarterly update. That update fell short of expectations due largely to issues at the Western Flank oil and gas operation. The issues aren’t going away any time soon, which has led to Beach downgrading its FY 2021 production guidance and withdrawing its five-year outlook.
Challenger Ltd (ASX: CGF)
The Challenger share price was out of form in April and sank 20.2% over the 30 days. Investors were selling the annuities company’s shares after the release of a disappointing third quarter update. Although Challenger reported solid growth in its assets under management, it surprised the market with commentary around its margins. Challenger advised that they have been impacted by a sharp decline in credit spreads over the year. This means it only expects to hit the low end of its earnings guidance range. And while management plans to lift prices significantly to combat this, there are concerns that this will weigh on sales.
Nuix Ltd (ASX: NXL)
The Nuix share price was a poor performer and tumbled 19.8% lower last month. The catalyst for this was the investigative analytics and intelligence software provider downgrading its FY 2021 guidance just six weeks since reaffirming it. Nuix advised that during April, a significant and larger than expected number of customers elected to transition from module-based subscription licenses to consumption and Software-as-a-Service (SaaS) license models. This has resulted in a shift in both revenue and Annualised Contract Value (ACV) profiles.
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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. recommends Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended Challenger Limited. The Motley Fool Australia has recommended Nuix Pty Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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