These ASX 200 shares were out of form last week…
The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia. –
The S&P/ASX 200 Index (ASX: XJO) returned to form last week and recorded a decent gain. The benchmark index rose 27.4 points or 0.4% to end the period at 7,488.3 points.
Unfortunately, not all shares were able to follow the market higher. Here’s why these were the worst performers on the ASX 200 last week:
Austal Limited (ASX: ASB)
The Austal share price was the worst performer on the ASX 200 last week with a 19.4% decline. This followed the release of the shipbuilder’s full year results. In FY 2021, Austal reported a 24.6% reduction in revenue to $1,572 million and a 12.1% decline in EBIT to $114.6 million. The team at Credit Suisse weren’t overly impressed. In response, the broker downgraded the company’s shares to a neutral rating with a lowered price target of $2.25. Credit Suisse has reduced its earnings estimates due to its expectation of softer margins in Australia and lower revenue in the US.
NIB Holdings Limited (ASX: NHF)
The NIB share price was the next worst performer with a 16.7% decline over the five days. Investors were selling the private health insurer’s shares following the release of full year results that fell short of the market’s expectations. In FY 2021, NIB reported a 2.9% increase in revenue to $2.6 billion and an 84.5% lift in net profit after tax to $160.5 million. A note out of Goldman Sachs reveals that it was expecting the private health insurer to report a 92.2% increase in net profit after tax to $171.4 million. Another note reveals that, in response to the results, Citi downgraded its shares to a sell rating with a reduced price target of $6.30. It was particularly disappointed with the performance of its international business.
Kogan.com Ltd (ASX: KGN)
The Kogan share price wasn’t far behind with a 16.1% decline last week. This was driven by the release of a disappointing full year result. For the 12 months ended 30 June, the ecommerce company reported gross sales growth of 52.7% to $1,179 million but an 86.8% decline in net profit after tax to $3.5 million. The latter was driven by inventory issues and led to Kogan pausing its dividends. Unfortunately, July hasn’t been much better. Kogan revealed a small increase in gross sales and an 80% reduction in EBITDA over the prior corresponding period.
Link Administration Holdings Ltd (ASX: LNK)
The Link share price was out of form and dropped 15.6% over the period. The catalyst for this was the release of the financial technology company’s disappointing full year result. In FY 2021, Link reported a 6% year on year decline in revenue to $1.16 billion and an 18% decline in operating net profit after tax and amortisation to $113 million.
The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.
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How does the Medibank (ASX:MPL) earnings result compare to NIB?
These 3 ASX 200 shares were flying around the share market this Friday
Motley Fool contributor 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 and has recommended Austal Limited, Kogan.com ltd, and Link Administration Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Link Administration Holdings Ltd and NIB Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.