Why A2 Milk, Appen, Jumbo, & Link shares are sinking

These ASX shares aren’t having a good day…
The post Why A2 Milk, Appen, Jumbo, & Link shares are sinking appeared first on The Motley Fool Australia. –

In late trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end its winning streak and record a disappointing decline. At the time of writing, the benchmark index is down 0.6% to 7,487.5 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price has sunk 12% to $6.02. This follows the release of a full year result that narrowly achieved its downgraded (four times) guidance range. The infant formula company reported a 30.3% decline in revenue to NZ$1.21 billion and a 77.6% fall in EBITDA to NZ$123 million. The company also revealed that it has decided against a capital return and warned that FY 2022 would be challenging.

Appen Ltd (ASX: APX)

The Appen share price has crashed 22% to $10.81 after the release of its half year results. Appen reported a 2% decline in revenue to US$196.6 million and a 14.3% fall in EBITDA to US$27.7 million. Although its EBITDA was a touch ahead of the US$27million analysts at Citi were expecting, the broker noted that its estimate was ~20% lower than consensus estimates. This means it fell well short of what the market was expecting. Appen also announced the acquisition of location data provider Quadrant.

Jumbo Interactive Ltd (ASX: JIN)

The Jumbo share price is down 10% to $16.40. This follows the release of the lottery ticket seller’s full year results. Jumbo reported total transaction value (TTV) growth of 37% to $487 million and revenue growth of 17% to $83.3 million. However, softer margins led to underlying net profit after tax growing only 7% to $28.3 million. Jumbo also announced the acquisition of Canada-based Stride Management.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price is down 12.5% to $4.50. Investors have been selling the financial technology company’s shares following the release of a disappointing full year result. 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 Why A2 Milk, Appen, Jumbo, & Link shares are sinking appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Own A2 Milk (ASX:A2M) shares? Here’s what the company has planned for FY22
Which ASX shares are leading the ASX 300 today?

How do the A2 Milk (ASX:A2M) results compare to broker expectations?
ASX 200 midday update: A2 Milk and Appen sink, Flight Centre rises

Jumbo Interactive (ASX:JIN) share price slides 8% despite record FY21 performance

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 Appen Ltd, Jumbo Interactive Limited, and Link Administration Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd and Jumbo Interactive Limited. The Motley Fool Australia has recommended A2 Milk and Link Administration Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!