Why Liontown, Nearmap, Ramsay, and Xero shares are sinking today

These ASX shares are falling heavily on Thursday…
The post Why Liontown, Nearmap, Ramsay, and Xero shares are sinking today appeared first on The Motley Fool Australia. –

The S&P/ASX 200 Index (ASX: XJO) is out of form and tumbling lower on Thursday. In afternoon trade, the benchmark index is down 0.5% to 7,384.9 points.

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

Liontown Resources Limited (ASX: LTR)

The Liontown Resources share price is down almost 10% to $1.68. This follows the release of the lithium developer’s definitive feasibility study (DFS) for the Kathleen Valley Project. The release notes that the project has a post-tax net present value (NPV) of $4.2 billion, a payback of 2.3 years, and post-tax Life of Mine (LOM) free cash flow of $12.2 billion. Investors may be concerned with the lofty long term lithium price the company is using as part of its valuation model.

Nearmap Ltd (ASX: NEA)

The Nearmap share price is down almost 11% to $1.92 following the release of its guidance for FY 2022. The aerial imagery and location data company advised that it expects annual contract value (ACV) of between $150 million and $160 million on a constant currency basis in FY 2022. This will be a year on year increase of 12% to 19%. This is short of its medium to long term target of ACV growth of 20% and 40%.

Ramsay Health Care Limited (ASX: RHC)

The Ramsay share price is down 4% to $69.32. This morning the private hospital operator released a trading update. That update revealed a 1.3% increase in unaudited first quarter revenue to $3.2 billion. However, on the bottom line, Ramsay reported an unaudited quarterly profit after tax of $58.1 million. This is down 39.5% on the prior corresponding period.

Xero Limited (ASX: XRO)

The Xero share price is down 7% to $137.27. This follows the release of the cloud accounting company’s half year results. For the six months ended 30 September, Xero reported a 23% increase in operating revenue to NZ$505.7 million but a 19% decline in EBITDA to NZ$98.1 million. This appears to be tracking at a rate that could make it hard for Xero to achieve the market’s full year expectations. For example, Goldman Sachs was expecting Xero to deliver revenue growth of 33% in FY 2022.

The post Why Liontown, Nearmap, Ramsay, and Xero shares are sinking today appeared first on The Motley Fool Australia.

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More reading

Why is the Xero (ASX:XRO) share price tumbling 7% if the company is growing revenue?

ASX 200 (ASX:XJO) midday update: Xero’s results and Nearmap’s guidance disappoint

Nearmap (ASX:NEA) share price slips despite plan to boost contract value by 12%–19% in FY22

Ramsay Health (ASX:RHC) share price falls 6% as earnings take a dive

Liontown Resources (ASX:LTR) share price sinks 9% after Kathleen Valley DFS

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 Nearmap Ltd. and Xero. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. and Xero. The Motley Fool Australia has recommended Ramsay Health Care Limited. 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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